The Department of Mineral Resources (DMR) has approved the conversion of Pan African Resources’ old-order mining rights for its Barberton Mines into new-order mining rights.

In terms of the South African Mineral and Petroleum Resources Development Act, 2002, (MPRDA) all mining licences issued prior to the Act’s coming into effect on April 1, 2004, are described as old-order mining rights.

Holders of such rights were required to have applied to the DMR for the conversion of the old-order rights into new-order rights within five years of the MPRDA’s coming into effect.

Barberton’s new-order rights relate to the mining licences in respect of the Fairview, New Consort and Sheba mines. These licences constitute the Barberton mining operation.

Pan African Resources CEO Jan Nelson says that the granting of the new-order rights ensures long-term stability for the company.

Pan African Resources spent a considerable period in 2009 overcoming the challenge of illegal miners. Initially, the situation was containable, as the illegal miners were scared to confront Pan African Resources employees on site. However, towards the end of the year, the illegal miners became increasingly aggressive, resulting in Pan African Resources closing the mines for two weeks over December to resolve the situation. During those two weeks, the company lost some 3 000 oz of gold production, Nelson reported.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.