South African Court Rejects Attempt To Stop Work At Tronox Fairbreeze Mine
MTUNZINI, South Africa, Jan. 9, 2013
MTUNZINI, South Africa, Jan. 9,2013 /PRNewswire/ -- Tronox Limited (NYSE:
TROX) today announced that the Durban High Court "dismissed with costs" an
application filed by the Mtunzini Conservancy for an injunction to halt
early-phase construction at the company's Fairbreeze mine project in northern
KwaZulu-Natal, South Africa.
The point of law under inspection by the court related to whether the
Fairbreeze mine had lawfully commenced mining related operations in light of
provisions contained in the Town Planning Ordinance 27 of 1949.
In its judgment, the High Court affirmed Tronox's legal position that the
South African Minerals Act 50 of 1991 governed mining at the commencement of
the Fairbreeze project and trumped all other legislation (barring specific
other national legislation) prevailing at the time. The High Court found that
1991 Minerals Act provides sufficient legislative checks and balances for
government administrators to regulate the industry and that additional
regulation under the Town Planning Ordinance of 1949 was not required.
The High Court also ruled that the Mtunzini Conservancy must pay legal costs
of Tronox which included costs of counsel in responding to the application.
As a result of the judgment, Tronox continues with early-phase construction of
the Fairbreeze mine. This phase entails site establishment of the platforms
for the primary wet plant site as well as temporary and permanent access
roads. Tronox must still obtain its Water Use License before ramping up to
full-scale construction and mine operation.
Once in operation the Fairbreeze mine is expected to yield 190,000 metric tons
of titanium dioxide ore and 60,000 metric tons of zircon over a 12-year
period. The Fairbreeze mine will preserve more than 1,000 permanent and
contractor positions and create an additional 1,000 indirect jobs during the
construction phase of the project. Approximately ZAR530 million will be spent
annually on services and products, with more than half spent with black
economic empowerment (BEE) companies.
Tronox is committed to environmental stewardship and sustainability in all
aspects of its business operations. The company has included environmental
sustainability considerations in its plan for Fairbreeze and has begun the
rehabilitation of its Hillendale mine, which Fairbreeze is designed to
Tronox is a global leader in the production and marketing of titanium bearing
mineral sands and titanium dioxide pigment. Through the integration of its
pigment and mineral sands business, the company provides its customers a
dependable supply of brightening solutions for a variety of end uses. For more
information, visit http://www.tronox.com.
South Africa Contact:
Tel: +27 35 902 7840
Media Contact: Bud Grebey
Investor Contact: Brennen Arndt
SOURCE Tronox Limited
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