Alweendo loses Haib copper mine licence renewal court case

Deep-South Resources has won its court case against the mines minister Tom Alweendo regarding the Haib copper mine licence renewal.

Alweendo had refused to renew the Haib mine licence saying Deep South had failed to advance the claim to pre-feasibility and complete the proposed drilling program as planned.

Deep-South maintained that the ministry was well apprised, with no objection on their part, of a proposed change from the pre-feasibility study to an upgraded preliminary economic assessment (PEA) and commencement of a complete feasibility study. 

The High Court ruled on March 10 set aside Alweendo's decision not to renew the Haib Copper mine's exclusive prospecting licence 3140.

One of the reasons the High Court gave is that the facts presented by Deep-South's subsidiary - Haib Minerals - should not have been ignored in the evaluation process.

The other reason is that Alweendo and the mining commissioner failed to consider Deep-South's huge investments in developing a low-grade deposit.

The third is that Alweendo and the mining commissioner did not factor in the Covid-19 pandemic's impact on businesses and the Haib mine exploration program.

If the minister does not appeal the judgement within 21 days, he must start renewing the Haib mine licence.

The court also ordered the Ministry to pay the legal costs of Deep-South's subsidiary Haib Minerals.

Deep-South chief executive officer Pierre Leveille said the judgement shows that Namibia still has the rule of law.

"This is a very positive verdict, and we are confident to create a new positive working relationship with the Minister and the new Mining Commissioner. It is also an important decision for Namibia as it shows that the rule of law prevails in Namibia. Our Board of Directors would like to thank our shareholders for their strong support over that difficult period," Leveille said.

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