are we building up to something.?, page-27

Hi Harry,

Since the whole Paja process (nationwide) began in the late 90s when the Black Economic laws were introduced, there has never been a case where the landholder (like Genorah) have lost. There has been over 200 cases where the landholders have won and there is another 2400+ cases still in backlog currently.

In 2008 the DMR did hand down a ruling to Genorah favour. Now that NKP has a mining license you can say that even if Anglo go to court they have to take the DMR to court. Anglo will have to argue why the DMR did not follow the constitution in awarding the mining right to NKP. Anglo will have to seek compensation from the DMR.

NKP has been talking to Anglo in "good faith". There is a lot of synergies with Anglo (like H farm infrastructure sharing with Modikwa depths) so NKP do have economic reasons to work with Anglo. I do not see that NKP has to give away a whole farm like Hoepakrantz for PAJA to disappear. Remember that Hoepakrantz has 12m ounces equivalent. Although the H farm is deeper than the others it is strategically located on Anglo boundary and they are about to run out of resources in the next 12-18 months. Even if Anglo did try to seek compensation from the DMR they would not have their case heard before Modikwa mine runs out of resource; and on the basis of cases heard so far they have little chance of succeeding.

NKP has been talking to Anglo in "good faith". It does make sense that Anglo should acquire Hoepakrantz, but NKP should receive a substantial royalty or infrastructure sharing from the deal.