Mitsubishi Pulls Out of Platinum Projects in South Africa

1 July 2009 (Last Updated July 1st, 2009 18:30)

Mitsubishi Corporation has cut funding for two platinum projects in South Africa owned by Canadian miner Caledonia Mining. Mitsubishi terminated the agreement on 30 June and will no longer provide funding for the Rooipoort and Mapochsgronde projects. Companies operating in South A

Mitsubishi Corporation has cut funding for two platinum projects in South Africa owned by Canadian miner Caledonia Mining.

Mitsubishi terminated the agreement on 30 June and will no longer provide funding for the Rooipoort and Mapochsgronde projects.

Companies operating in South Africa have to ensure that broad-based black economic empowerment groups will hold at least a 26% equity stake in mining companies by 2014.

The South Africa Department of Minerals, however, insisted on introducing empowerment at the exploration stage, which was not envisaged and did not meet Mitsubishi's requirements.

Caledonia will own the projects completely and explore other strategic options, the company said.