JOHANNESBURG (miningweekly.com) - The Department of Minerals and Energy (DME) has confirmed that ASX-listed Mineral Commodities (MRC) has reached “final sign off” and conversion of mining rights for the Tormin mineral sands project on the west coast of South Africa.

The Steenvas mining right conversion had been awaiting approval by the DME and was expected at the same time as final sign off of the Tormin mining right, which was initially expected to be signed in April, but was delayed several times.

MRC first received notification from the DME that the Tormin mining right had been granted to its South African subsidiary, Mineral Sands Resources, on February 15.

The delay was reportedly owing to “inconsistencies in the documentation provided for execution”, the company noted.

MRC had been reviewing its options with regard to its black economic-empowerment partner for the project after its existing partner failed to meet its contractual and funding obligations.

On December 10, the company announced that it had issued over 18-million new ordinary shares to fund the initial development stages of its Tormin mineral sands project.

The company issued the shares at A$0,02 apiece, raising some A$368 000.

The titanium mineral bearing Tormin deposit along the coast is covered by two tenements, one held by MRC and the other held in the name of Steenvas, but under option to MRC.

MRC said it had received interest from major industry participants and end users for the Tormin product and was confident that once the mining right was fully approved and executed, offtake agreements would be finalised.

MRC was also awaiting clarification from the DME on the contentious Xolobeni mineral sands project, located along the Wild Coast of South Africa.

In August, the DME indicated it would proceed to grant the mining right for a portion of the area at Xolobeni, where after the Amadiba Crisis Committee lodged an appeal against the granting of the licence.

The final decision on whether or not the licence would be granted was still unknown, and the DME has not indicated when a decision was likely.

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