Nkwe back on the bourse after South Africa mining suspension lifted
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Embattled minnow Nkwe Platinum surged as much as 67 per cent after resuming trade on the ASX following a year’s hiatus.
Nkwe (ASX:NKP) is back on the bourse after the South African government finally lifted the suspension of mining rights over its flagship Garatau project.
In October 2016, the South African Department of Mineral Resources declared that Nkwe had failed to meet certain provisions under the Mining Act and threatened to suspend or cancel its mining right over the project.
Nkwe was instructed by the Department to implement a social and labour plan before mining operations could re-start.
It was alleged Nkwe failed to provide adequate information regarding its commitments under the social and labour plan including employment equity, human resource development, housing and living conditions during an inspection by the Department in September last year.
Nkwe also failed to submit specific reports as required under the act.
The lifting of the notice was conditional on the agreed programs being implemented and the Department satisfied with the progress.
Yesterday, Nkwe revealed the Department was now satisfied and the notice to suspend or cancel the mining right was lifted.
“This reaffirms the company’s mining right over its tenements,” Nkwe said.
The stock — which has been in suspension since mid-October 2016 — began trading again on Friday, surging as much as 67 per cent to 7.5c before cooling to 6.4c, up 42 per cent.
The company owns 74 per cent of a mining right over the Garatau project area which consists of three tenements located in the Bushveld Complex.