Aquarius moves to boot Marikana contractor (January 02, 2006)

Aquarius Platinum (AQPTY-O) has moved to dismiss mining contractor Moolman Mining at its Marikana platinum mine in the Bushveld region of South Africa, citing an “actionable misrepresentation” by the contractor.

Owner and contractor had been embroiled in a dispute since at least 2004, over price-adjustment provisions in the mining contract. An audit requested by Moolman, tabled last October, caused the contractor to increase its claim to R169 million ($31 million) from an earlier R130 million ($24 million), but also raised questions from Aquarius. On the advice of its lawyers and forensic accountants, Aquarius is now claiming that Moolman and its parent company Aveng misrepresented material facts in the audit.

Aquarius is now claiming R1 billion ($183 million) in damages against the contractor.

Marikana, near Rustenburg, has struggled with mining and metallurgical problems since being opened in 2002. Aquarius owns 75%, with Impala Platinum (IMPUY-O) holding the rest.