South African platinum miner Lonmin has become the first to comply with tough new regulations, enabling it to convert its rights to the new rules.

Lonmin will be allowed to mine at its Marikana operations for the next 30 years, with the right to apply for another 30 years after that, and chief executive Brad Mills believes that the successful conversion will help the company roll out its $1 billion expansion programme over the coming three to five years.

Mr Mills explained that the aim is to effectively double Lonmin's Limpopo operations, creating up to 5,000 new jobs. He also revealed that the successful rights conversion would help the firm to meet - and possibly exceed - its production target of 1.3 million ounces of platinum by 2010.

The rules regulating the mining industry were brought into operation in 2004 and they place all previously held private rights under the custodianship of the state.

Mining companies are required to comply with strict ownership, social, environmental and employment thresholds if they are to convert the rights held by the state into licences.

Ÿ Adfero Ltd