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: INFOMAN who wrote (1008)	4/28/1998 9:22:00 AM
From: Goalie	Read Replies (2) \| Respond to of 7235

BUSINESS DAY, April 28/98 Outcome of diamond dispute lies in government's hands THE battle between Toronto-listed SouthernEra and heirs to diamond-mining property prospected by the Canadians sends ominous signals to other offshore mining firms wanting to invest in SA, says mining reporter David McKay. GOVERNMENT says it will not take sides in a legal dispute between Canada's SouthernEra and NGS Minerals, the enterprise claiming ownership through inheritance of a diamond-rich farm already prospected by the Canadian mining company. However, deputy director-general Jan Bredell of the minerals and energy department said government was not sitting on the fence. He said government had a part to play in the destiny of the mineral rights, located on the Marsfontein farm in the Northern Province. Bredell said SouthernEra had asked the minerals and energy department to implement section 24 of the 1991 Minerals Act, in terms of which the Marsfontein farm could be expropriated by the state. It now remains for Minerals and Energy Minister Penuell Maduna to decide whether such a step would be appropriate. Analysts believe the implication of Section 24 is akin to the philosophy of a recently published green paper in which a new mineral policy is suggested. The main thrust of the proposed mineral policy is that the state gets "the final say", particularly in handing over the right to mine specific mineral rights. According to Bredell, had the green paper been in effect, the dispute between the heirs and SouthernEra might have been pre-empted. SouthernEra was not the first mining company to prospect Marsfontein but it was first in deciding the resource was viable. It invested money in prospecting and has said it spent time unsuccessfully seeking out possible heirs to the farm. The aim was to compensate the heirs while SouthernEra developed the area. The heirs eventually emerged but only after SouthernEra was ready to push the button on mining the area. After several months, the heirs decided to house their business interests into NGS Minerals and now appear to have gained control of Marsfontein. Some analysts believe this is a pity. The Marsfontein diamond resource was effectively sterilised until SouthernEra decided to mine it. It is unclear whether the heirs had any intention of mining the prospect in the past. A complication is the involvement of diamond giant DeBeers. It is understood that De Beers has lodged an application with the minerals and energy department to prospect the Marsfontein farm itself. What is certain is that De Beers has already agreed to pay NGS Minerals for the mineral rights should NGS successfully rebut the claim of SouthernEra that the land is theirs. In offering to buy the land from the heirs, for a sum thought to be between R70m and R75m, De Beers was making the struggle of the heirs a lucrative endeavour, analysts said. However, the Marsfontein farm is comparatively small business to De Beers. De Beers produced 9,6-million carats from its SA mines in its last financial year and 50% of the world's gem diamonds by value, both from its own mines and in partnership with the governments of Botswana, Namibia and Tanzania. In comparison, the section of the Marsfontein farm under dispute comprises mineral rights estimated to yield between only 1-million to 2-million carats over its entire life. For its part, De Beers says small joint ventures are part of its business strategy and it has already concluded a number of joint ventures for small pockets of diamonds. There is, however, a minor irony in De Beers' involvement. The loss of the mineral rights by a foreign-based investor, which had already spent money prospecting the rights, does nothing to instil confidence in SA among other potential offshore miners. The effect of De Beers' involvement in the issue is at some variance with chairman Nicky Oppenheimer's statement in the group's latest annual report, in which he said the group wanted to be a "constructive player in the economic resurgence of Africa". ________________________________ AFRICAN MINING NEWS, April 28, 1998 De Beers signs agreement on Marsfontein mineral rights (AMB) De Beers has signed an agreement to purchase mineral rights from NGS Minerals, who succeeded last month in registering mineral rights on certain portions of the farm Marsfontein. De Beers says it will not take transfer of the mineral rights until mid-May at the latest to allow a local court to consider an application for an interdict restraining NGS Minerals from alienating or encumbering its Marsfontein mineral rights. In another development, SouthernEra Resources (who have been exploring and developing on the property), has issued a statement suggesting the matter is far from resolved. SouthernEra cites a foreign newspaper report in which South African Minerals and Energy Minister Penuell Maduna is quoted as saying the state will defend the matter against the 29 heirs represented by NGS Minerals.

To: INFOMAN who wrote (1008)	5/14/1998 9:58:00 AM
From: Goalie	Read Replies (1) \| Respond to of 7235

INFOMAN & GULL -- you both owe an apology to SUF! You accused the company, its executives, and continued to feed misinformation on this thread! Read Dr. Jenning's response to your so-called facts! I sincerely hope that those who read INFOMAN's and GULL's jibberish in previous threads can now decide for themselves as to who is taking "the high moral road" -- is it SUF, or the duo of "the Joker and the Penguin!" BTW, INFOMAN/GULL -- you don't have to apologize to me... although now everyone will know who has spoken the TRUTH! 14 MAY 1998 Setting record straight on wrangle Dear Sir, REGARDING Simon Barber's column on the Marsfontein wrangle (Business Day, May 7), it had not been SouthernEra's intention to post on the Internet discussion group a detailed rebuttal of the numerous incorrect allegations made there by "infoman". I am surprised a newspaper of your calibre would print something based on unsubstantiated claims made on an Internet chat group without fully checking the facts from both sides. Certain statements reported in Business Day need clarification. No pressure was put on the minerals and energy minister to grant the rights to Randgold. At the time of the application for rights, initially to prospect and subsequently to mine, under section 17 of the Minerals Act, there were no living, registered mineral rights holders, nor had anyone who might have inherited the rights done anything to take transfer of or to deal with these rights for almost 30 years. Under these circumstances the minister undoubtedly had a discretion to grant Randgold and its joint-venture partner SouthernEra rights to prospect and mine under section 17. At the same time a sum of money, exceeding the going rate for mineral rights options purchases in the area, was lodged with the state to compensate any legitimate mineral rights holder who might emerge. SouthernEra, on behalf of the joint venture with Randgold, had expended (following the issuing of legal prospecting permits for the farm) C$6m and not C$180m on Marsfontein as stated in Business Day. Finally, SouthernEra has not acted and will never act outside the law. We worked together as the operator under a valid legal agreement with Randgold and under prospecting permits legally granted to Randgold by the minister. To allege that diamonds were removed illegally from the farm is ludicrous. No mining ever took place on he property. Samples of drill core were removed from the property for testing and analysis. This is legal under the permit. Furthermore, all diamonds recovered have been properly recorded and are lodged in safekeeping at a commercial bank in SA. CMH Jennings Chairman, SouthernEra Resources Limited