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Firms keen to mine in heritage site

Sep 01 2011 12:43 Sapa

Company Data

Coal Of Africa Ltd [JSE : CZA]

Last traded R4.30
Change R-0.30
% Change -6.52%
Cumulative volume 1.24m
Market cap R2.85bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Pretoria - Many applications have been received from companies wanting to mine within the Mapungubwe world heritage site in northern Limpopo, the environmental affairs department said on Thursday.

"There (are) a lot. Some go as far as to the core (of Mapungubwe)," deputy director general for biodiversity and conservation Fundisile Mketeni said.

Mketeni said the department's decision on whether or not to grant the applications would be influenced by studies already conducted. Many of these mining companies would however have to "bite the bullet" because of a need to "save and maintain the universal value of the site".

Mketeni was speaking at the announcement of a "ground-breaking" agreement which the department, SA National Parks and mining company Coal of Africa [JSE:CZA] had signed to ensure the integrity of the Mapungubwe national park.

The agreement formed part of the environmental permit granted to CoAL, to start developing its controversial Vele colliery, near the Mapungubwe national park.

CoAL chief executive officer John Wallington said the memorandum was a sign that all parties were seeking to find the right balance between conservation and economic development.

He highlighted that in future, more mining was likely to take place in environmentally sensitive areas.

Mketeni recently defended the department's granting of a permit to CoAL, saying emotions should be put aside when dealing with environmental matters. At the time, he said the department had relied on scientific evidence to make its decision.

The department initially raised concerns when it first emerged that mining would take place in the area.

Various organisations protested against the development, even threatening legal action should the department decide to grant authorisation for further construction.

The department defended the decision to give environmental consent for the Vele colliery, saying any impact could be mitigated. It said indigenous vegetation could be moved from where roads would be built, and planted elsewhere.

The department of mineral affairs gave CoAL a mining licence in March last year, but construction was stopped by the environment department in August after it found several regulations had been transgressed and there had not been sufficient consultation with affected parties.

CoAL subsequently submitted two "rectification applications" and paid a R9.25 million administrative fine in May.

 
 
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