4) Was Anglo the holder of the original permit rather than combined with ARM and this is the reason ARM cant commence action without Anglo's involvement?
A JV was made in 2001 on the Modikwa farms between Anglo and ARM and would of needed government approval the same as Nkwe with Genorah's leases.
"The third category is that of 'unused old order rights', comprised of the common law mineral right with or without the relevant statutory authority to mine or prospect where no mining or prospecting activities were occurring on 30 April 2004."
I dont think there was a JV on Modikwa Deeps in 2004 and would of needed approval. Anglo had until 1st of May 2005 to convert these rights.
The reason I dont think there was a JV in 2004 and Anglo alone held the rights is because of their 2004 report where they attribute only 50% of the Modikwa mining lease to themselves but 100% of the Modikwa deep project.
Annual report 2004 Ore reserves and mineral resources
Anglo Platinum’s attributable interest is 50% in the Modikwa Platinum Mine JV, the UG2 figure quoted is the attributable interest. Due to successful exploration efforts the confidence in quantification and categorization of resources is significantly improved. During 2004, mining operations commenced
Modikwa Projects: In the 2003 annual report, 100% of the resources on Garatouw, Hoepakrantz and Eerste Geluk were quoted and 50% of those on Nooitverwacht (subject to depth constraints only 50% of the resources were quoted). These resources are pending the granting of a prospecting right
Annual report 2006 Ore reserves and mineral resources
Special note regarding mineral rights for RPM, (portions of Rooderand 46JQ, Beestkraal 290JQ, ‘Others’ [Garatouw 282KT, Hoepakrantz 291KT, Eerste Geluk 322KT and Nooitverwacht 324KT] and for Kalkfontein 367KT):
Where applications for new-order prospecting rights have been initially refused by the relevant authorities but are still the subject of ongoing judicial review and discussions with the relevant authorities and where Anglo Platinum has a reasonable expectation that the prospecting rights will be granted in due course, the relevant resources have been included in the statement.
In the 2005 and 2006 annual reports:
50% of the mineral resources in Modikwa Deeps are quoted (Garatouw, Hoepakrantz and Eerste Geluk and 25% of those on Nooitverwacht due to depth constraints only 50% of the mineral resources).
50% of the portions of the Driekop UG2 Reef. Modikwa Deeps and Driekop UG2 Reef are part of the Modikwa joint venture but are quoted separately in ‘Others’ for comparison with the 2005 figures.
The reports come out in December so in December 2004 Anglo owned 100% of Modikwa Deeps and and only had a futher 6 months to apply for the conversion. I dont think the DMR would of approved the farm in of 50% in those 6 months without approving the new order rights...Doesnt make sense, anyway it looks like Anglo had the rights in 2004 and this is maybe why ARM cant launch procedings without Anglo.
NKP Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
