Benefits to SA economy

IN the first six months of mining on the West Coast, Tormin generated revenue of $11.1-million (about R121.7-million) and reported profit of $1.5 million.

Some indication of the benefit that accrued to the local economy can be garnered from the expenses incurred in these six months to end-June.

Mining and processing costs were $6.8-million, administration expenses $1.5-million and employees' and consultants' remuneration $437 526.

Assuming the bulk of this was spent in South Africa, total spending in the local economy was just under $9-million, about R100-million.

If this level of costs is maintained in the second half,spending will be around R200-million for the full year. To the extent that Tormin's operations are expanded, future years will see an increase in money spent in the Western Cape.

In September MRC also revealed that it is optimistic that the DMR will award a new prospecting right over the Kwanyana block in the six months to December enabling the company to do the final work necessary to submit a mining right application for the entire Xolobeni project as soon thereafter as possible.