The following is an update on the planned new mineralsands mine of Mineral Commodities and Transworl

The following is an update on the planned new mineralsands mine of Mineral Commodities and Transworld Energy, its progenitor. The company has cleared permtiting with the South African government despite fervent oppositon.

Mineral Commodities to have busy 12 months

Sarah Belfield

Miningnews.net

May 04, 2004

Mineral Commodities is aiming to get mining approval for its Xolobeni mineral sands project in South Africa by May 2005 after has recently gaining a 25-year mineral lease for the project. The junior will $2-3 million over the next 12 months on a scoping study, bankable feasibility study and environmental impact assessment, with the company having cash of $3.1 million at end of the March 2004 quarter.

In February 2002, the company obtained sole option to convert its Xolobeni prospecting permit to a mineral lease, on condition that a business plan, mining plan and program, and environmental management plan were submitted.

Mineral Commodities obtained the mineral lease after submitting the required documents during the March 2004 quarter, through its South African subsidiary Transworld Energy and Minerals Resources.

Additional reports were submitted in the process, namely a public consultation, a social and labour plan strategy, an environmental review, rehabilitation procedures, and a market analysis.

Under the new Mineral and Petroleum Resources Development Act in South Africa, the company has 12 months from May this year, when the Act is likely to take effect, to apply for mining rights under the new legislation.

Xolobeni is a large mineral sands resource located about 200km south of Durban on SA's east coast, with the resource contained within five blocks along a 33,000ha coastal strip. The project has been under somewhat of a cloud due to some in South Africa calling for the project to be refused development approval on environmental grounds.

Pre-feasibility work on Xolobeni has previously scoped out a potential US$202 million development including construction of a separate mineral separation plant and downstream smelter.

Mineral Commodities' shares closed unchanged at 28c.