Showing posts with label Coal of Africa. Show all posts
Showing posts with label Coal of Africa. Show all posts

Thursday, August 5, 2010

Mapungubwe Action Group take aim at mining firm

Environmentalists served an application to controversial mining house Coal of Africa, as well as the minister of mineral resources, Susan Shabangu, to stop activities at a proposed coalmine near Mapungubwe immediately. The application served on Limpopo Coal, the subsidiary of Coal of Africa, is an attempt by the environmentalists to limit what has already been described an irreversible environmental damage.

The Australian-owned company received a permit earlier this year for its Vele Colliery project next to the Mapungubwe National Park, where the world-famous 800-year-old gold rhino statuette was unearthed in 1933, raising concerns about the threat to a prime heritage spot and environmentally sensitive area. The Mapungubwe Action Group, an umbrella group consisting out of the Endangered Wildlife Trust, the Association of Southern African Professional Archaeologists, Peace Parks Foundation, WWF, Birdlife of South Africa and the Wilderness Foundation of South Africa, is driving the court action.

Coal of Africa chairperson Riaan van der Merwe was unavailable for comment while Shabangu's spokesperson did not return the M&G's calls. The action group has brought out the heavy batters in their fight against the mine. It has appointed legal advisors were from the Centre for Applied Legal Studies at Wits and has also secured top-notch advocate Wim Trengove's services. The action group has lodged internal appeals against both the decision to grant the mining right and the decision to approve the environmental management programme, "These appeals are pending and the applicants have at this stage not yet received any answering papers," said Nick Hilterman, Mapungubwe Action Group chairperson. "In the meantime, construction on the mine site is proceeding at pace and we are worried about the environmental damage. We have launched the interdict application in an attempt to prevent further destruction of the area while the legal disputes are pending,' he said. "The interdict application is thus an interim measure that seeks to prevent the mine from carrying on any mining or related operations at Vele." He said the interdict application also seeks to question the commencement of mining or related operations in the absence of a water use license and on private nature reserves. It is due to be heard in the next month in the North Gauteng High Court.

The interdict comes amid comments environment minister Buyelwa Sonjica made to Reuters this week. "We are concerned about the illegal activities that the company embarked on when this matter was still under discussion,” she said. In addition, the Department of Environmental Affairs has cracked the whip at the mine in the past month and is preparing for a major operation in law enforcement compliance. Sonjica has rallied behind the environmental department, while her other department, Department of Water Affairs, is also resisting the mine's application for a water licence.

In reaction to Sonjica's comments, Coal of Africa issued a statement that all its activities undertaken at the Vele Colliery have been carried out lawfully. "We have not undertaken any activities for which authorisation has not been given," said Simon Farrell, Coal's executive deputy chairperson from Australia. He said the company would oppose the application vigorously. The mining order rate, executed in March this year together with the approved environmental management, permit Coal to start development activities on site, Farrell argued. "The company is unaware of the alleged 'illegal activities' referred to and is therefore seeking an immediate meeting with the minister to identify and address any issues and concerns," said Farrell. He said Coal had been served with two pre-compliance notices from the environmental department alleging various matters, including that the Vele Colliery has proceeded with the construction of the access road and storage facilities. "But we have not undertaken any activities for which authority has not been granted," he said.

With the department's action, the interdict and the looming court battle of the Mapungubwe Action Group, the Australian mine group's argument will most certainly be tested in court. "Coal of Africa interprets the new mining order right as overriding national environmental management legislation and regulations," said Johan Verhoef, Peace Parks Foundation chief. "Therefore they believe that Department of Water Affairs cannot refuse them a water licence. This will all be tested in court and the Vele court case could very well be a watershed case for mining rights in sensitive areas."

Source: Mail & Guardian

Thursday, July 1, 2010

Environmental probe for dodgy mining rights

A special environmental government task team is to investigate mining in sensitive areas. This follows a swarm of controversial green lights given by the mining department for mining and prospecting rights in sensitive areas in the past couple of years.

The task team is the result of the long-anticipated meeting last week between Environmental Mminister Buyelwa Sonjica and Mining Minister Susan Shabangu. The two had met to discuss Sonjica’s concern over the controversial Vele colliery next to World Heritage Site Mapungubwe. "The minister is still deeply concerned about what is going at the mine," Sonjica’s spokesperson Sputnik Ratau said. But he said the minister believed the task team was a step in the right direction to resolve the environmental concerns. He described the meeting with Shabangu as fruitful.

Shabangu’s department issued mining rights to Coal of Africa at the beginning of this year, but Sonjica came out strongly against the Vele mine. She requested a formal meeting with Shabangu on the matter in February, but last week’s meeting was the first to result in significant reported progress between the two departments.

Last week the Mail & Guardian reported that the Green Scorpions had swooped down on Coal of Africa’s Vele mine in May. Two weeks ago the department of environmental affairs issued an order against the mine for environmental transgressions. Coal of Africa must now make representations to the environmental department on why it should not be prosecuted.

The M&G understands that the department is now conducting regular surveys to determine what exactly Vele had done. This week officials from both departments flew over the mining area as part of the ongoing investigation. "We need to determine whether the work Vele had done is within the scopes of permission it had been granted, and just how far they had gone beyond the legal framework," Ratau said.

Coal of Africa has maintained that all the work it has done so far, including the clearing of bush and building of new structures, falls in within the mining rights order it obtained. Last week Coal of Africa’s CEO Riaan van der Merwe insisted that the mine had acted within the law at all times.

Vele will not be the only mine investigated by the task team, though it is understood that much of its focus will be on Mapungubwe. "The task team is to look at the bigger picture, the ultimate impact of mining on sensitive areas," Ratau said. "And of course Vele will be one of the new focus areas, as it has been a contentious issue." The task team, which will have high-ranking officials from both the mining and environmental department on board, is also aimed at relieving tensions between the two departments and improving dialogue on environmental issues.

Other sensitive spots that have been in the news for mining activities include areas near Dullstroom, Chrissiesmeer and Wakkerstroom in Mpumalanga, Verlorenvlei near Piketberg in the Western Cape, as well as the Winelands. In many of these areas only strong environmental activism served as a warning to the impacts of mining on the local environment. But environmental activists say their job is getting more difficult with the avalanche of mining licenses the mining department has been awarding.

The two ministers will now draft a definition of what they see as sensitive areas, and the locations of these areas. On Thursday, Gareth Morgan, the DA’s spokesperson on water and environmental affairs, welcomed the task team but called for the two departments to extend this project by establishing a mining advisory forum with a specific focus on the effects of mining on the environment. "The discussion on what is a sensitive area should not be contained only in government," he said. "It should be thrown open to stakeholders from civil society, including farming and environmental organisations," Morgan said.

Source: Mail & Guardian

Friday, June 25, 2010

Scorpions sting colliery

Senior sources in the Department of Environmental Affairs have revealed that the department cracked down on controversial coal mining near the world heritage site of Mapungubwe last week, ordering the mining company, Coal of Africa, to stop all "illegal" building activities immediately. But Coal of Africa denied receiving an order, saying that the company instead "received regular visits from a number of government departments", including environmental affairs and mineral resources. "Characterising such a visit by the Department of Environmental Affairs as a raid is unjustified," said Riaan van der Merwe, Coal of Africa's chief operating officer. But environmental department spokesperson Roopah Singh confirmed on Thursday a "pre-compliance notice" was issued on June 18. She said Coal of Africa now has to make representations to the department about the mine's transgressions.

The development has again highlighted tensions between environmental affairs and the mineral resources department over mining in this sensitive area of Limpopo. The mining department issued mining rights to Coal of Africa at the beginning of this year. The Mail & Guardian understands that the directive, relating to building at the Vele mine that the department has not approved, followed a raid by the environmental police unit, the Green Scorpions, at the mine earlier this month.

The unit moved in to check whether Coal of Africa had built roads and other structures without the necessary environmental impact assessments. Sources in the department said that the Green Scorpions found several instances where Coal of Africa had ignored departmental regulations. They were also concerned about the clearing of bush on colliery property. In a statement on Thursday Van der Merwe said the company had the necessary authorisation for bush clearing in the area covered by the mining rights. In addition, the necessary permits had been obtained from the national departments of agriculture and forestry and the Limpopo environmental affairs department. He also said that, although the company had not received permission from environmental affairs to build access roads, it was using the existing main road.

The Australian-owned company received a permit earlier this year for its Vele Colliery project next to the Mapungubwe National Park, where the world-famous 800-year-old gold rhino statuette was unearthed in 1933. Though it has not yet started mining, it is constructing the infrastructure required to begin operations later this year.

In May the M&G reported that Coal of Africa had been clearing bush that contained baobab trees. The colliery is 7km from the park's boundaries. The coal-processing plant would be 27km from the world heritage site, Mapungubwe Hill.

Buyelwa Sonjica, the minister of environmental affairs, has openly declared her opposition to the mine and her department has refused to approve the environmental impact assessments for roads and fuel storage sites associated with the mine. The company has signed a letter of intent to supply up to 5-million tonnes of coal annually from Vele and its sister project, Makhado, to steel giant ArcelorMittal. Opponents of the mining claim that the coal will be used to drive a coal-fired power station, Mulilo, that is planned for the region.

The department of mining did not respond to questions.

Source: Mail & Guardian
Also see the Save Mapungubwe website

Thursday, June 4, 2009

Digging for mining licences

Coal-mining companies with black empowerment partners who have friends in high places are posing a growing threat to some of South Africa’s most sensitive environmental areas. The companies are seeking to cash in on South Africa’s coal resources, mainly in Mpumalanga, by supplying cheap coal to Eskom.

Coal-mining companies with black empowerment partners who have friends in high places are posing a growing threat to some of South Africa's most sensitive environmental areas. The companies are seeking to cash in on South Africa's coal resources, mainly in Mpumalanga, by supplying cheap coal to Eskom.

o The empowerment partners of Coal of Africa, which is prospecting near heritage and national park site Mapungubwe, include new Minister of Human Settlements Tokyo Sexwale's Mvelaphanda group.

o The sister of the former trade minister Mandisi Mpahlwa, (who is President Jacob Zuma's financial adviser) Mandlakazi Mandaka, is the BEE partner of Delta Mining Company, which has been handed a permit to prospect in Wakkerstroom. Concerns have been voiced about the impact of mining on the area's important wetlands.

o In Dullstroom ANC funding vehicle Chancellor House has applied for a prospecting licence amid allegations that it is riding roughshod over local stakeholders.

o In Belfast farmers have mounted a court challenge to Exxaro, Africa's largest black-controlled diversified mining company and the biggest supplier of coal to Eskom.

The applications have pitted environmental groups such as the Escarpment Environmental Protection Group and the Mpumalanga Lakes District Protection Group (LPDG) against mining groups and have turned farmers into green activists. The activists are pointing fingers at the department of minerals and energy for favouring companies with political connections. The department has denied looking at the ownership of companies in awarding permits, except to check their BEE credentials. Many government officials, former officials and their families have decided to seek their fortune in mining through BEE deals in the coal industry.

They include Science and Technology Minister Naledi Pandor's husband, Sharif Pandor; former director general of trade and industry Alistair Ruiters and former minister of minerals and energy Penuell Maduna. Brigette Radebe, the wife of Justice Minister Jeff Radebe and sister of mining billionaire Patrice Motsepe, is the driving force behind Mmakau Mining, which has entered a joint venture with Total Coal SA.

The department's mineral regulation deputy director general, Jacinto Rocha, said his department would not punish anyone for having political connections. "There is no prohibition on family members [of officials] of the department or elsewhere in government getting mineral rights," he said. The fact that former political leaders had received permits was a mere coincidence. We look at compliance when we issue licences," he said. "We don't look at who is there."

Environmentalists also question Zuma's decision to move Buyelwa Sonjica from minerals and energy to environment, seeing it as a sign that BEE coal-mining interests now trump environmental concerns. Rocha strongly denied this. He said activists sometimes became very "emotional" and did not consider all the facts. "We don't issue licences on emotion, we issue them on the basis of law," he said. "After having followed the process, it does not make a department official happy or sad. It is just a yes or a no, after the process was followed to the letter. "We all have children. No one in the department says 'to hell with the environment'," he said.

Rocha said the department received 622 prospecting applications last year, of which 62 were granted and 125 denied. The others are still being processed. He named an application by an unnamed mining house in amphibian haven Chrissiesmeer, also on the Mpumalanga escarpment, as an example of an application refused on environmental grounds. The applications show that many mining companies now have the Waterberg in their sights. The Waterberg coalfield, around Lephalale in Limpopo, has 50% of South Africa's remaining coal reserves and hosts South Africa's latest power station, Medupi.

The area is home to the Waterberg biosphere, Marakele National Park and many private reserves.

Only Exxaro's Grootgeluk colliery operates in the area. But Exxaro Resources chief executive Sipho Nkosi said the Waterberg has sufficient coal to feed eight power stations and the company could be mining there for the next 200 years. Several mining houses, including BEE company Sekoko Coal, are investigating the feasibility of an open-cast coal mine in the Lephalale area and several have applied to the government for prospecting licences. Companies seeking prospecting licences must submit environmental management plans, which involve consultation with the owners or lawful occupiers of the land in question. In many cases, however, landowners and interested parties dispute that there has been adequate consultation. The department must also submit applications to the water affairs and environmental affairs departments. In many sensitive cases these claim they did not see licence applications or, as in the case of Mapungubwe learned of them only at the last minute. The law provides that sister departments have 60 days in which to react to environmental management plans. "If there is no response, we take it that the department has nothing to say," said Rocha. "You can't blame us if someone in another department doesn't do their job."

Coal of Africa (CoAL), the driver of a controversial proposed mining venture near world heritage site Mapungubwe, has powerful allies. Its BEE partner is the Mvelaphanda group, headed by Tokyo Sexwale before he was appointed to Cabinet. Mvelaphanda owns a stake in CoAL through African Global Capital (AGC), which owns a 26% stake. But the connections do not end there. Former intelligence director general Vusi Mavimbela is the executive director of Mvelaphanda responsible for business strategy and African expansion. This week Mavimbela was tipped to become the director general in President Jacob Zuma's office.

CoAL's mining application has sparked a public outcry, with South African National Parks and even the former minister of environmental affairs, Marthinus van Schalkwyk, speaking out against the proposed mining. But CoAL's chief operating officer, Riaan van der Merwe, said the park and the mine could coexist. "We know there is a lot of emotion around coal mining, particularly considering the scars left by mines in the Witbank area," he said. "But mining methods have changed drastically." He said CoAL took its environmental responsibilities seriously and intended managing the mine in line with the vision of the proposed Transfrontier Conservancy Area. Among the measures planned at the mine were the use of strobe lighting when reversing trucks, rather than a warning beep. High-noise activities such as blasting will also be restricted to between 8am and 4pm. He said the mine was far enough from Mapungubwe not to disturb the park. All baobab trees uprooted as part of mining operations would be lifted and replanted.

CoAL has 74% ownership of the project, with the remaining 26% held by several BEE groups, according to Van der Merwe. He would not disclose their identity.

Environmental groups regard the Delta Mining Corporation's (DMC) exploration for torbanite and coal in the Wakkerstroom region as the gravest threat this environmentally sensitive area has faced. The groups, including World Wildlife Fund South Africa, the Botanical Society and Birdlife South Africa, have objected to the granting of prospecting rights in more than 20 000ha of pristine grassland and wetland. They and local farmers have joined forces against Delta in two high court applications for the prospecting rights to be revoked.

Central to their case is the weak environmental management plan, which the Mail & Guardian has seen. The report turns a blind eye to the pristine state of the area and to its biodiversity, including rare birds such as wattled cranes and other red data species.

Investigative programme 50/50 revealed that the sister of former minister of trade and industry (Mandisi Mpahlwa, who is Jacob Zuma's financial adviser), Mandlakazi Madaka, is the BEE partner in DMC's venture in Wakkerstroom. "We are aware of reports of who our BEE partners are, though we are not aware of any concerns, certainly we have none," said Delta chairperson Bernard Swanepoel. He said Delta Mining was a private company whose shares were mainly held by its chief executive and founder, Heine van Niekerk. An investment company in which Swanepoel is a director, To The Point Growth Specialists, owns 30% and the rest is held by the management team, he said. Swanepoel denied allegations that the environmental management plan used to secure prospecting rights in Wakkerstroom was fatally flawed. "We outsourced two scoping studies to two separate independent competent persons," he said. "We are confident that the process we ran was thorough and professional. Although some areas were identified as sensitive, none were identified as irreplaceable and our exploration process will ensure that sensitive areas are left undisturbed," he said. Swanepoel said the DMC property is not adjacent to or in the wetlands. "Our property is about 20km away and about 200m lower than (or downstream of) the wetlands in the area," he said. "About two-thirds of our prospecting area is old or current mealie fields. Consequently our property and the land we plan to explore will allow for coal extraction that should in no way affect the wetlands."

Source: Mail & Guardian