Construction Delays Reported at Robert Friedland’s South Africa Platinum Mine

Ivanhoe Mines (TSX:IVN), lead by billionaire Robert Friedland, has run into delays in construction of its $1.6 billion Platreef mine, according to Bloomberg. The news outlet reported that the roadblock is due to a disagreement between the miner and South Africa’s mines ministry regarding benefits of the mine to local communities.

As quoted in the publication:

South Africa’s Department of Mineral Resources delayed authorization to start building the $1.6 billion Platreef mine by 12 weeks to a target date of Nov. 26, saying some elements of the company’s plan to benefit the surrounding community were “sketchy” and did “not offer much,” according to an Oct. 2 letter sent to Ivanhoe and seen by Bloomberg. The department said its demands were “not exhaustive” and it may request “further clarification” before it gives the go-ahead.

Ivanhoe CEO Lars-Eric Johansson said on October 9:

We believe that each and every formal request by your department to date has been accommodated.

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