PERTH (miningweekly.com) - ASX-listed Marathon Resources on Monday agreed to a A$5-million settlement in compensation from the South Australian government after it proposed to ban mining at Arkaroola, in the Northern Flinders Ranges.

In November last year, the uranium explorer initiated legal action against the state government, after mining was banned on certain parts of the Arkaroola pastoral lease, including the entire area covered by Marathon's Mount Gee exploration licence.

The Arkaroola area was given unprecedented protection, initially under the Mining Act, with new legislation specifically implemented, aimed at excluding mining in the area.

Marathon said on Monday that as a consequence of the settlement, the company has now discontinued its Supreme Court action.

“While the company would have preferred to have had the opportunity to realise the mineral potential of the Mount Gee and surrounding prospects, the settlement goes some way to recognizing the shareholder value lost as a result of the ban on mining at Arkaroola,” said Marathon chairperson Peter Williams.

“The board is pleased that this difficult period for the company has come to an end. The settlement with the state government allows the company to move on and seek out new opportunities with sufficient cash resources to exploit them,” he added.

Williams said that the board would now consider how best to use the available cash, and would examine projects including continued support for the North Flinders indigenous people, in order to determine if they met investment criteria.
 

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