The resolution of the legal title over the five contested exploration properties, situated in the eastern limb of the Bushveld Complex in the Limpopo province, has been described by junior miner Nkwe Platinum, as a “significant step” in moving forward in the road to unravelling the platinum resources in the area.

Following the resolution agreement, the ASX-listed Nkwe revealed its intentions to list with the Johannesburg Stock Exchange by June this year.

The settlement follows a dispute over the prospecting rights of five farms, following legal action threatened by Anglo Platinum, after the rights were awarded to Genorah, a major shareholder in Nkwe Platinum.

Following several meetings between Anglo Platinum, Nkwe, Genorah, African Rainbow Minerals and the Department of Minerals and Energy (DME) an agreement has been reached in which the parties will abide by the original decisions of the department. 

This includes refusing the applications submitted by Anglo Platinum and the awarding of prospecting licenses to Genorah; the legal proceeding instituted by Anglo Platinum or its subsidiary companies, which were suspended in 2007, will be discontinued; and all parties will enter into commercial negotiations to consider joint exploitation of their respective mineral resources.

Nkwe MD Maredi Mphahlele says that the company is looking at “fresh approaches” to work with in the commercial negotiations. While a date could not be disclosed for the expected negotiations, it is expected to start soon.  

Commenting on relations between Anglo Platinum, Genorah and Nkwe, Mphahlele says that the dispute over the prospecting rights was between Anglo Platinum and the DME, and that the company was looking forward to the future negotiations. The primary parties involved in the land dispute were Anglo Platinum, Genorah and the DME.

While future challenges were expected, Nkwe executive director Andile Nkuhlu tells Mining Weekly that the company is pleased with the progress made to date on its current projects.

“We are committed to resource definition and the listing timetable of Genorah and Nkwe. This resolution signifies to Nkwe and Genorah a primary asset to develop our planned mines, and the economic growth and upliftment that it will provide to the province and the people of Limpopo,” says Nkuhlu.

Nkwe is currently conducting an expedited exploration programme and a bankable feasibility study (BFS) in the Garatouw farm in the north and the Eerste Geluk farm in the south of the eastern limb of the Bushveld complex, with a view to develop two mines with a combined annual production of one-million oz of platinum group metals.

The BFS is expected to be complete in the north of the Eastern bushveld complex by 2009, while the south of the Bushveld complex is expected in mid 2008. Challenges hindering the BFS to date include the delays in turn around times at the metallurgical plant facility and the availability of rigs.

Once the BFS is completed, the process to establish the design of the mines will begin and construction of the mines is expected to start in 2010. Production is expected to begin by 2013.

The five farms have an independently assessed targeted scope of mineralisation in excess of 100-million oz, and the potential of Nkwe’s pgm assets make it possible for it to become an independent pgm producer and strategically utilise independent or joint ventured smelting and refining capabilities.

Nkuhlu stresses that the settlement of the prospecting rights secured Nkwe’s and Genorah’s independence, which was crucial to Nkwe’s future success in the platinum industry.