Rustenburg Platinum Mines has lost its battle to prevent the Gamawela community's land restitution claims in South Africa, after a court upheld the decision to transfer the rights to the indigenous people.

The Land Claims Court ruled that the land restitution claims are legitimate, in a case that is being seen as a potential precedent.

Judge Moloto decided that the community is entitled to restitution of their land under the principles outlined in the Restitution Land Rights Act of 1994, more than 50 years after they lost their settlement.

Durje Gillfillan, an attorney for the community, welcomed the decision and hinted at further action in a number of areas.

"It's the first claim that is based on labour tenant's rights. There are many of these claims certainly in the Lydenburg district or wider in Limpopo and Mpumalanga province where these people have to rely on the informal rights in order to get their land back. But the court can, in terms of the restitution act, upgrade these rights to full title and ownership," he told SABC news.

Rustenburg Mines Limited, which plans to raise the annual production rate to 3.5 million ounces of refined platinum by the end of 2006, is a wholly owned subsidiary of Angloplats.