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Court sets aside decision to suspend Buffalo’s Aviemore mining right

2nd October 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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A South African court has granted TSX- and JSE-listed Buffalo Coal an application for urgent relief, setting aside an August Department of Mineral Resources (DMR) decision to withdraw its Aviemore anthracite mine’s mining right.

Following the application being heard late last month and pending a final determination of the application for the review and setting aside of the Ministerial decision, the court has granted an order stipulating that the Ministerial decision is of no force or effect, the Minister is interdicted from awarding Mining Right 301 (MR301) to any other party and the company can continue to mine in terms of MR301.

Buffalo now has 30 days within which to launch the review application to obtain final relief in the form of an order setting aside the Ministerial decision.

The company has advised that its legal team, including senior counsel, has indicated a strong likelihood that the review application will be successful.

The South Africa-focused coal miner’s 2013 MR301, as well as the approval for the environmental management plan for its KwaZulu-Natal-based colliery is retracted on the back of “procedural issues” relating to an earlier objection by Aviemore Trust over the award process.

Buffalo had acquired the right through Zinoju Coal from Leeuw Mining & Exploration in 2013.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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