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

To: GULL who wrote (1527)	6/11/1998 12:32:00 PM
From: VAUGHN	Read Replies (2) \| Respond to of 7235

Hello Gull Thank you. Granted "the SA Government is not there to bail anybody out of trouble", however, in light of the bureaucratic, blunder or subversive decision, contradicting the DME's previously issued SUF Prospecting Permit, Mr. Maduna may quite rightly feel amends are in order for his department having created this confusion. Hypothetically, and in light of the speech in Parliament quoted earlier, should the DME determine that DeBeers has locked in potential production (has been sitting on assets), consistent with the new Policy, they possibly might confiscate, or threaten to confiscate those assets. These in turn might possibly be offered to SUF in compensation. On the other hand, might not DeBeers, faced with the threat of seizure, decide to resell their rights to SUF? I trust even you will admit, that if a negotiated solution is the only option here, the Minister could play a strategic and active role in motivating both parties. After all, the Minister must be embarrassed by what his department did, and is interested in seeing this deposit mined, jobs created and taxes paid as soon as possible. Regards