Mount Burgess Mining, the Australian listed company says it has commenced legal action in respect to the non-renewal of PL69/2003 – the Kihabe Project in Botswana and allegations of maladministration in regard to 14 months for rejection decision to be handed down.
The company said the funding of litigation has been agreed to be undertaken by AP Stirling, a Director of Mount Burgess Mining.
According to the company, on 9 July 2013, Botswana’s minister for the Ministry of Minerals, Energy and Water Resource informed Mount Burgess Botswana (Proprietary) Limited (MBB), that he was unable to reverse his decision rejecting the Application for Extension of PL69/2003, submitted on 29 March 2012, (Refer to Attachment).
“In addition any holder of a Mineral Concession issued under the Mines and Mineral Act of Botswana is required to comply with the relevant sections of MMA irrespective of the company’s international reporting requirement. JORC Code or any other international requirements does not substitute one’s obligation under the MMA,” stated paragraph 4 of the minister’s letter.
Mount Burgess Chief Executive Officer, Nigel Forrester said the company believes that what is outlined in Paragraph 4 as a reason for not renewing PL69/2003, is not in accordence with Sections D and E of the MMEWR Checklist for Appropriate Company Programme of Prospecting Operations which formed part of the documents lodged in 2010 for the Extension of PL69/2003.
Sections D and E of the MMEWR Checklist cover Reserves as required for Pre-feasibility and Mine Feasibility studies respectively. The MMEWR Checklist stipulates “Delineated Reserves must be compliant to one of the international codes for estimating reserves”. In its submission MBB stated that the delineation of reserves would be undertaken.
“However, in compliance with the JORC Code, which is an accepted international code, MBB was subsequently not able during the two years to 30 June 2012, to upgrade its resources to ore reserve status required for a feasibility study because of the lack of a commercial power supply. MBB was previously advised that grid power would be available in the project area by the end of 2012,” Forrester said.
“Regarding obtaining the Minister’s approval to amend the prospecting programme as MBB was not able to complete a feasibility study (refer Paragraph 3 of the Minister’s letter), MBB advised the previous Minister MMEWR on 23 March 2012 of the impact the non-availability of power was having on the project. The previous Minister suggested that MBB should join the power forum in order to be updated regarding the future provision of grid power,” he added.