50 to save paying 75 is a good deal, but perhaps your math is different. This is the crux of the whole Marsfontein issue, although you choose to obfuscate.
For two years, SUF thru Randgold explored the Marsfontein area, with a prospecting permit granted by the DME. Note that De Beers had replied to Randgold that the area was of no interest to them. (Hardly surprising, since De Beers only "finds" diamonds once others have made discoveries -- look into the past)
The Mining Act of 1991 makes it clear that a prospecting permit can only be issued by the DME with the consent of the mineral rights holders -- ergo the state enacted Section 17 in 1995 to allow for the permitting. The existence of a prospecting permit implies the DME had authority to issue it. This is only possible thru Section 17.
(Us poorer shareholders will most certainly commence legal action if the DME allows SUF to be robbed.)
The registration of the mineral rights in March of 1998 deserves much scrutiny: How could the government of RSA, after encouraging the exploration, development and expenses incurred by SUF/Randgold, after issuing the exploration permits (possible only with approval of the mineral rights holder -- the state) possibly allow for a different owner? Obviously this is dirty pool. This will be the area of concentration very quickly. Obviously, crimes were committed, either against the will of the government, or with tacit approval.
Dr. Maduna's handling of the expropriation will tell us which of the above happened: either the state "approves" the crime, or it restores the rightful possession of the mineral rights to SUF/Randgold. Either justice prevails, or foreign mining interests look to South Africa like Indonesia (government abetted theft).
All this being said, the best result is still a negotiated solution. This allows for all parties to save face. But SUF will not buckle to the silly demands of De Beers. (as an aside, does it seem likely that De Beers would recently include others into the negotiations? What does Black Empowerment mean?). SUF have been nothing if not model corporate citizens. Wish that the same could be said of De Beers.
(Oh, yeah: for the crap we've gone thru, a group of Canadians will move to oust De Beers from Canada regardless. You folks don't scare us much here in Canada)
Confluence
It is this simple. This will come to a decision very quickly. |
