A court case over a lithium mine stands to hit the mining industry hard.
A Chinese-owned firm, Avoseh Investments has found itself in a tussle with a state-owned corporation, Sandawana Mines. Sandawana held first rights to prospect in an area in the Midlands province.
After Sandawana pegged a 3 800 hectare area, private firms were invited to prospect. Avoseh registered a claim in November 2022, giving it access to lithium deposits worth some R285 million.
Sandawana however, applied for an interdict against moving any ore for processing, claiming that to have jurisdiction over the site. Avoseh, it avered, had bot properly obtained mining rights.
Since this demand arose from 2003 legislation, and Sandawana held its claim by virtue of preexisting rights, it was not required to hold this certificate. However, Avoseh needed to be compliant, as would other firms holding licences issued after 2003.
While Avoseh is appealing, concerns exist that the ruling could affect many other firms.