Sierra Rutile to restart Area 1 operations
ASX-listed Sierra Rutile on Tuesday announced the planned restart of Area 1 mining operations, pending a contract for additional power generation capacity and assuming that a new fiscal regime is in place.
Earlier this week, the government instructed Sierra Rutile to restart operations at Area 1 by the end of May, claiming that the company had violated the Mines and Minerals Development Act by suspending operations early this year.
Sierra Rutile reiterated on Tuesday that it did not agree with the government’s view that it had breached the Mines and Minerals Development Act when it stopped mining operations last year.
Sierra Rutile and the government have been in negotiations since May 2023 regarding a new fiscal regime for Area 1 under a third amendment agreement. in January, Sierra Rutile issued a suspension notice after the government stated that the third amendment agreement would no longer apply to the company, reverting instead to the fiscal regime in place as at November 20, 2001. The miner argues that this change renders any ongoing operations in Area 1 economically unviable.
Sierra Rutile said the restart decision was based on the assumption that the third amendment agreement continued to apply for the remaining production from the existing Area 1 operations.
Comments
Research Reports
Projects
Latest Multimedia
Showroom
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
