Sandile Nogxima, Director General of the Department of Minerals and Energy, has outlined plans to extend the deadline for compensation claims against loss of mining rights.

Mr Nogxima said that the cut-off point will be extended by two-and-a-half years to April 30th 2009, via an amendment to the Minerals and Petroleum Resources Development Act to be proposed this week.

It is thought that the extension of the deadline will enable the process of transferring old-order to new-order rights to be completed, which will give government ministers a clearer picture of where reparations should be paid.

Mr Nogxima told MiningMX: "With the misalignment there was a possibility of a flood of lawsuits before April 30th 2007. This alignment has dealt with that.

"It is to encourage people who want to make use of the provisions of the Act. It is for those who feel that there has been expropriation of their rights to get compensation if they have to. We have got nothing to hide and we are not frustrating legitimate claims," he added.

Currently, the South African government is facing legal action from Luxembourg-based Finstone. However, because the company has sought to pursue its R2.5 billion claim via an international arbitration body it is unlikely that it will be affected by the legislation.

Ÿ Adfero Ltd