| Thu 8 Apr 2010, 15:12 | | KEH - Keaton Energy Subsidiary Acts Against Landowners Delaying Vanggatfontein |
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KEH
KEH
KEH - Keaton Energy Subsidiary Acts Against Landowners Delaying Vanggatfontein
Project Development
Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/011090/06)
JSE share code: KEH ISIN: ZAE000117420
("Keaton Energy" or "the company")
KEATON ENERGY SUBSIDIARY ACTS AGAINST LANDOWNERS DELAYING VANGGATFONTEIN PROJECT
DEVELOPMENT
Keaton Energy said today that its 74%-held subsidiary, Keaton Mining (Pty)
Limited (Keaton Mining), is taking legal action against four Mpumalanga
landowners who are preventing it from starting its mining operations at its
Vanggatfontein coal mining project near Delmas.
Keaton Mining has served papers on the landowners, advising them of its
intention to seek an order from the High Court of South Africa, instructing them
to grant access to the land.
Keaton Mining was granted a mining right by the Department of Mineral Resources
in respect of the farm Vanggatfontein 251 IR on 1 June 2009. The mining right
became effective on 23 February 2010, when Keaton Mining`s environmental
management programme (EMP) was approved.
"The owners of seven sub-divisions of the farm neither lodged objections against
the granting of the mining right nor challenged it once it was granted," says
Keaton Energy MD Paul Miller.
"They were thoroughly consulted prior to the granting of the EMP; all issues
raised by them were included in the documentation placed before the decision-
maker; and none objected to the approval of the EMP."
Miller says Keaton Mining is willing to acquire the properties at market value,
but the landowners are demanding between three and four times market value.
"We have also offered compensation as contemplated in Section 54 of the Mineral
and Petroleum Resources Development Act (MPRDA), but they are insisting we pay
their inflated purchase price.
"Our project, for which we have sought and secured every regulatory approval, is
being delayed by these landowners` unwillingness to reach a fair settlement with
us; it is regrettable but - in the interests of all of our stakeholders - we
must now seek a court order compelling them to grant us the access we need,"
Miller said.
Bryanston
08 April 2010
Sponsor
Nedbank Capital
Date: 08/04/2010 15:12:03 Produced by the JSE SENS Department.
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