African Amines based in the eastern mining town of Newcastle received a 100,000 rand (16,000 dollar/ 12,000 euro) fine after being found guilty on two counts of illegally exporting the chemical Dimethylamine, said national prosecutions authority spokesman Makhosini Nkosi.

Dimethylamine or DMA is used in a variety of substances including as a raw substance for rocket fuel and pesticides.

Nkosi said however that the 120 tonnes of DMA shipped to Iran in March last year, as well as some 11 tonnes to Australia in May 2003, had been exported for commercial use to companies in the two countries "without a permit."

But he stressed the consignments had not gone to "a military or terrorist entity for use as a chemical warfare agent"

South Africa has signed international agreements to block the proliferation of weapons of mass destruction Nkosi said, adding "any failure by the government to honour its obligation could result in the United Nations' withdrawing the country's non-proliferation status."

Two foreign nationals and a South African man were arrested in September and accused of taking part in an international smuggling ring to supply nuclear know-how to Libya.

Gerhard Wisser, 66 a German national and Daniel Geiges, 65, from Switzerland, were arrested on September 8 in South Africa and charged with four counts of contravening the Nuclear Energy Act and a law banning the proliferation of weapons of mass destruction.

South Africa is currently investigating ties with a nuclear smuggling network thought to be linked to Pakistani scientist Abdul Qadeer Khan who admitted in February to helping Libya and other nations develop their weapons programme.

South African businessman Johan Meyer was charged earlier in September with possessing sensitive nuclear-related equipment, but the charges were abruptly dropped amid widespread speculation he had turned state witness in exchange for immunity.

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