Ivanhoe Mines (TSX: IVN, Stock Forum) got the development wheels back in motion at its South African Plantreef project as the Department of Mineral Resources (DMR) and the company jointly announced today that the mining right for the development and operation of Plantreef had now been finalized.
According to the news release, the mining right allows the company to mine and process platinum-group metals, nickel, copper, gold, silver, cobalt, iron, vanadium and chrome at the company's Plantreef discovery, located near Mokopane on the Northern Limb of the Bushveld Complex.
The license was issued for a 30-year term and may be renewed for further terms, each not exceeding 30 years at a time.
Formal activation of the right came after the company satisfied certain conditions set out when the initial license was granted on May 30 of this year. Work at the site was halted as of May 26 pending finalization of the right.
As a result of yesterday's execution, the company's unit, Ivanplats, will take steps to terminate a consultation process with its Plantreef workforce that was launched earlier this month under the Labor Relations Act as a prelude to possible retrenchments at the site.
Minister of Mineral Resources Advocate Ngoako Ramatlhodi, commented, “The final regulatory approval of the Platreef Project's mining right is significant not only for the development of the project itself but it also signals the South African government's determination to grow our country's economy. The Platreef Project will attract foreign capital, create much needed jobs and contribute significantly to socio-economic development in areas surrounding the project.”
Company Executive Chairman, Robert Friedland, added, “With the shared, ongoing commitments of the Department of Mineral Resources, our Broad-Based, Black Economic Empowerment partners and our supportive co-investors from the Japanese trade and industry consortium, Ivanhoe Mines' Platreef Project is going to become a sustaining foundation of jobs and support serving the common interests of our host communities in Limpopo province.”
Dr. Patricia Makhesha, Plantreef Managing Director, concluded, “After all of the discussions that have been held with stakeholders about these very significant benefits that will flow from the development and operation of the planned mine, we are about to begin seeing our words translated into meaningful actions.”
Ivanhoe Mines was in the news recently when the company responded to misinformed and damaging comments allegedly contained in a Bloomberg article at the beginning of October.
Shares climbed 11.11% on the news to $0.90 per share.
Currently there are 691.8m outstanding shares with a market cap of $622.6 million.