Bowman Gilfillan

Precedent for Anglo Platinum threat?

In September 2011, South African mineral resources minister Susan Shabangu cancelled the mining rights of Johannesburg- and London-listed Central Rand Gold (CRG). The circumstances of the cancellation had a similar basis to the action that the minister has threatened to take against Anglo Platinum. Six months prior to the purported cancellation of CRG’s right, CRG had halted underground mining because of a flood risk. The company was accused of contravening the mining laws because it did not implement its mining work programme and failed to meet social and labour plans. CRG took the decision on review to the High Court on an urgent basis. The minister agreed to the temporary suspension of the decision and ultimately did not challenge the review, which resulted in the decision to cancel being set aside by the High Court in December 2011.

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