Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Gord Bolton who wrote (6987)	10/4/2002 1:37:20 PM
From: Letmebe Frank	Respond to of 7235

Here's another must read.... SouthernEra backs dual listings Sherilee Bridge October 04 2002 at 08:14AM Johannesburg - Huge amounts of mining revenue streams would flow offshore if foreign mining companies were not allowed dual listings on the JSE Securities Exchange, SouthernEra Resources, the Canadian company jointly developing three former Anglo Platinum properties with empowerment company Mvelaphanda Resources, has warned. The company, which holds 70.4 percent of Messina Platinum and 50 percent of the Klipspringer Diamond Mine, is the third foreign mining company to express frustration at the limitations imposed by South Africa's exchange control regulations. UK mining and exploration group Cluff Mining and Aquarius Platinum, the Australian mining company, have both expressed similar frustrations in the past month. Patrick Evans, the president and chief executive of SouthernEra, said the new mining laws made it easier for foreigners to invest in the country's mining industry but South Africans were still not allowed the opportunity to participate directly in the upside of these investments. He pointed out that 70 percent of the profit that was expected to be generated by the Messina project would flow offshore. It made sense, he said, that some of these revenue streams generated from mining in South Africa stayed in the country. "We would love to allow South Africans to participate but a listing would have to wait until exchange controls are lifted." He said the company, which has its primary listing in Toronto, Canada, took up a secondary listing on the Alternative Investment Market in London last month. SouthernEra was seeking to enter into quite a few joint ventures, both exploration and development, with empowerment companies, Evans said. But from an investor's point of view, the current mining legislation was fraught with difficulties. "So we are very supportive of the Minerals and Petroleum Resources Development Act and the shift of mineral rights to the state. The new bill will reduce the risk of doing business in South Africa, not only for foreigners but for locals too." Evans said the company and its partner Mvelaphanda were hoping to start prefeasibility work on the Dwaalkop properties, inherited under the new minerals regime, in the next three months. Under the new regime, SouthernEra and Mvelaphanda have been given the right to prospect and then develop the mine on the properties without paying upfront for land or mining rights. Evans understood the joint venture would only begin to pay royalties once the mine was profitable. He expected royalties paid to the government to be close to the 6 percent paid to governments elsewhere in the world. The Dwaalkop joint venture with Mvelaphanda would become part of the Messina complex, which would be developed in four phases.