The South African Department of Mineral Resources has served a Section 54 notice on the mine citing breaches relating mainly to a recent pit wall failure and to drilling and blasting patterns.

Mining has been suspended, but processing, logistics and shipping continue as normal.

Jupiter owns 49.9% of Tshipi.

The company said the operation was "comfortably ahead" of its business plan for the financial year to July, having shipped 1.6 million tonnes of manganese against a target of 1.3Mt.

August sales have been 316,000 tonnes and the mine remains on track to meet its sales commitments of 324,000t in September.

"However, should the Section 54 notice not be lifted this week, October sales will be impacted," Jupiter said.

Management of the mine will meet with the department today to seeking the lifting of the notice.

The Tshipi operating company had 2.7 billion rand (A$260 million) in the bank at the end of July, which will cover the previously flagged 1.5 billion rand dividend.

The dividend is expected to be declared in the coming weeks, after which Jupiter will consider returning cash to shareholders.

In June, Jupiter said it would return all of the cash received to shareholders, which would be well in excess of its 70% distribution policy.

Separately, Jupiter said Tshipi and Mamatwan have signed a co-operation agreement to advance the mining of the barrier pillar between the two mines.

The barrier pillar mining will release sterilised ore that has a much lower strip ratio than the life of mine plan.

Jupiter CEO Priyank Thapliyal has returned to the helm of the company after a 3.5-month absence due to gallstone-induced pancreatitis.

Shares in Jupiter dropped as low as A31.5c this morning, the lowest point since the company listed on the ASX in April following a $240 million initial public offering.

The stock  finished down nearly 3% for the day at A34c.