A potential issue that I wonder if could be a problem for Nkwe and the Garatau project is the fact that part of the processing plant and, in particular, the tailings dam (TSF) is to be located on Maandagshoek farm. The mineral rights to this farm are Anglo/ARM, however the surface rights are retained by the state.
The TSF site selection study stated that the negotiation for these rights (i.e. surface rights) “is not expected to pose an insurmountable problem”…however I also recall reading somewhere in one of those documents the preferred location for the TSF was pretty much the only place it could go (ergo..no agreement on surface rights…no TSF..no mine). To build TSF (atop relatively good farming land mind you) Nkwe would have to gain permission from locals (and compensate for lost income), etc. and this is all a separate authorisation process (to DMR/mining rights). I don’t know, but if Anglo/ARM have significant influence over the granting of authorisation and/or support from locals then they could hold up the entire process (in addition to whatever is happening currently in the courts).
Anyone got any views/info on the likelihood that gaining permission to build the TSF on Maandagshoek farm is going to be problematic?, likely?, insurmountable?...
Also, just for interest, I note that originally (from what I can tell) the plan was to build 2 TSFs (one separate for the Chromium containing tailings), but now the plan seems to build only 1 (and treat the Cr). Perhaps this was part of the optimised costs in the BFS announcement (TSFs are expensive!)?...
Just my guesses/ thoughts …they may well be way off base…but at least hopefully the discussion can get away from the slanging match I usually see here!
I think that <20c is irresistible on the risk/reward basis for a speculation…I buy, hold & wait.
For those bored or interested in seeing where the TSF is supposedly to be built, google map ‘maandagshoek-1’ and the area for TSF (and part of processing plant) is the big flat between Maandagshoek-1 and Mt Sekiti (~3km to the North East). The (potential) mine location is to the west of Maandagshoek-1.
p.s. my thanks to all the regular contributors Mac, Bali, BG, cgw, even rod, etc. etc.
Good luck, will see you at $1 (or zero!) Ben
NKP Price at posting:
15.0¢ Sentiment: ST Buy Disclosure: Held
