Lawyer vows court action
August 18, 2008 Edition 1

ARTHI SANPATH and RIVONIA NAIDU

The Department of Minerals and Energy’s decision to give the green light for mining on the Eastern Cape’s Wild Coast will not go unchallenged.

This is the word from environmental lawyer Prof Jeremy Ridl, who is working with the Sustaining Wild Coast Campaign (SWC) to stop mining on the ecologically sensitive coastline.

“Non-governmental organisations are mobilising, co-ordinated under the SWC’s campaign and technical experts to appeal the decision to mine,” Ridl said. He added this would be a “lengthy and cumbersome” process that could take years.

“If there are attempts to start the mining before the appeals process has ended, then there will be court action,” he said.

The wrangle over the Xolobeni Minerals Sands Project on the Wild Coast has become a controversial battle between the government and environmentalists.

On Friday, department of minerals and energy minister Buyelwa Sonjica told the media that the Australian company, Mineral Resource Commodities, was awarded provisional mining rights.

Some leaders in the impoverished community have welcomed the mining, saying employment will be created.

But Ridl explained that a sustainable long-term plan had still not been brought forward by the government. The lack of this plan, he said, would have a negative effect on the surrounding communities when the mine “closed shop”.

“The lack of the long-term sustainable plan has the ability to destroy the communities,” he said.

Ridl said while employment may be created in the short term, the real profits “will not be seen in the communities”.

“All that will be left behind will be a wasteland and the mine will massively change the coastal dune environment, resulting in the tourism option being ruled out,” he said.

This was a problem experienced worldwide, he said.

Ridl explained that although there had been questions raised over the lack of an environmental management plan, objections seemed to have been “dismissed”.

Opposition political parties said the views and benefits of the people in Xolobeni were most important.

The Democratic Alliance spokesman on environmental affairs, Gareth Morgan, said because the OR Tambo district was one of the three poorest municipalities in the country that fell out of the net of government delivery, many people who are desperate for all types of opportunities could view unsustainable developments like mining as attractive.

“But my view is that eco-tourism in the Wild Coast has a far more competitive advantage than any other of our coastlines. If it remains pristine, jobs can be provided on a sustainable basis.

“Mining in that area could create jobs, but not more than a few 100 jobs, and it would only last about 22 years. Thereafter, the area becomes less attractive and would lose its appeal as a tourist destination,” he said.

He said Sonjica sought to racialise an issue so she could stifle debate on the issues affecting the community.

IFP member of parliament Thulasizwe Buthelezi said the needs of the community on the Wild Coast needed to be balanced against conserving the environment.

Posted on August 20th, 2008 by Louis
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By Fred Kockott

It was the strangest of meetings, and a blatant demonstration of the buying power of government, the mining industry and politicians.

An indication of the jamboree that lay in store on Friday first came from an early telephone discussion on Thursday with an excited Madiba Qunya, chief lobbyist for the Xolobeni Minerals Sands Project.

Preparations for the meeting were going well: 150 security marshalls had been recruited and a full day’s entertainment and free food was on offer for some 7 000 people being transported in.

The destination, Xolobeni, not far from the Mthenthu estuary on the Wild Coast, is one of the most idyllic settings and ecologically sensitive environments on South Africa’s coastline.

The Xolobeni Minerals Sands Project is a controversial operation that intends to strip Wild Coast dunelands of valuable titanium minerals over the next 25 years.

Qunya, together with Eastern Cape attorney, Max Boqwana, is also the brains behind the establishment of Xolco, a black empowerment entity that stands to receive a 26 percent stake in the expected multimillion-rand profits.

“I’m making so many calls, my cellphone’s battery is flat every day,” said Qunya, referring to his preparations for the event in association with top officials from the department of minerals and energy (DME), the Eastern Cape provincial government, the Oliver Tambo district municipality and the Mbizane local municipalities.

The occasion: the announcement by the DME minister, Buyelwa Sonjica, that the mining is going ahead.

The decision to award a mining licence - even in the face of objections from the department of environmental affairs - has sparked one of South Africa’s biggest environmental controversies, a growing campaign of protest from environmentalists and divisions within the community, particularly in areas earmarked for mining.

Challenge

Leading this campaign is Sustaining the Wild Coast director and Johannesburg social worker, John Clarke.

Clarke also facilitated the establishment of a community grouping, the Amadiba Crisis Committee, as a vehicle for affected residents to voice their concerns and even legally challenge the decision to grant a mining licence.

One of its leading members, Scorpion Dimane, has since died of natural causes - a middle ear infection, it states on the death certificate.

But in a rural community where superstition exists, stories are circulating that sinister motives or mysterious dark forces might have been behind Dimane’s death.

This week SABC 3’s 50/50 environmental programme screened a documentary giving voice to speculation that Dimane’s death was not natural, insinuating that he might have been murdered for his strong, principled stance against the mining.

Such speculation has been slammed by Qunya and Xolco chairman Zeka Mnyamana, nephew of the late Dimane, as divisive propaganda

“It’s not right. It’s causing confusion. There are people - outsiders, environmentalists - who want to see us fight. There will be no bloodshed over mining,” said Mnyamana.

It was against this backdrop that Sonjica and top DME officials arrived in Xolobeni this week to announce that mining was going ahead.

Besides free food and a full day’s entertainment, identity book registration and social welfare grants were also on offer for people throughout the Amadiba district, many of whom had been transported in from areas far from where the mining is planned.

Marshalls kept a register, seemingly for mining lobbyists to record a huge groundswell of support for the project.

But a snap survey by the Sunday Tribune revealed that many of those attending did not even know that a mining announcement was on the agenda of the day’s proceedings.

Qunya said the register was not for the mining company to use, but simply for security reasons, in case there is “chaos caused by these protesters”.

“But as you can see 7 600 registered and there are only this handful, 60 people, who are protesting, led by the nose by John Clarke,” said Qunya.

“They are empty, they know nothing,” said his brother Bashin, referring to Amadiba crisis committee protesters, who, after interrupting the proceedings, were castigated by OR Tambo district mayor Zoleka Capa, saying they were playing up for the media.

Talking to journalists, Sonjica said she had come to the area to find out what people’s concerns were about the mining.

But such consultation was not on the agenda, and in her speech, Sonjica declared the decision on mining was a done deal.

“We are going to mine for people to get employment,” said Sonjica.

She said all environmental concerns raised about the mining were being addressed through the environmental management plan.

Like Capa, Sonjica also suggested that divisions over mining in the community had been caused by “rich whites” and attorney Richard Spoor.

Capturing the mood of the moment afterwards, local resident Nomsa Langa said, “I’m happy for the people of this place.

“The minister did the right thing. We see a bright future for our kids. They (the DME) are serious about us… We are now out of the poverty.”

Posted on August 18th, 2008 by Louis
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Posted on August 15th, 2008 by Louis
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August 14, 2008

By INGI SALGADO

There are perplexing questions around last week’s granting of mining rights in a 7km stretch of pristine coastline at Xolobeni, part of the Wild Coast that would be most inaccurately named were heavy metal extraction to proceed.

In fact, there are so many questions that the department of minerals and energy may be wishing that the application for prospecting rights had never landed on its desk some years back.

The decision to award mining rights to the local subsidiary of Perth-based Mineral Commodities (MRC) is likely to set in motion a legal challenge from the anti-mining lobby that may involve questioning the constitutionality of legislation that provides for new-order mining rights.

Not since the battle for St Lucia was waged by conservationists in the early 1990s has a mining application received so much opposition - this time from a cross section of interest groups, including community representatives, traditional leaders, environmental groups and the department of environmental affairs and tourism, which prefers ecotourism for an area that contains more plant species than the UK.

The minerals and energy department, on the other hand, appears more interested in Xolobeni’s description as one of the 10 largest mineral sand resources in a world hungry for minerals such as titanium (although this is disputed by some geologists).

It might be interested in protecting itself from litigation - ironically enough, from MRC. When the department granted MRC prospecting rights for four blocks at Xolobeni in 2005, it appeared to be unaware that part of this 22km of coastline fell within a protected coastal reserve designated by Bantu Holomisa, the ex-leader of the apartheid-era Transkei homeland.

The existence of the protected area would certainly have come to the department’s attention last year, when the appeal court upheld the reserve’s status by ruling against 16 cottage owners in the area.

The department’s decision to award mining rights in just one of the four blocks - the one that falls outside of the reserve and is deemed the least environmentally sensitive - appears to acknowledge the pickle it now finds itself in. There is speculation that granting MRC these partial mining rights is an attempt to prevent a lawsuit to reclaim the company’s prospecting costs from the state, which some estimate at tens of millions of dollars.

But the decision leaves the state open to litigation from the anti-mining lobby. If the original prospecting licence was flawed, then it would seem logical that the mining licence on which it was based would be too.

The department has yet to explain why it granted an application with such obvious shortcomings, chief among them blatant disregard for community participation.

The Human Rights Commission concludes in a report released last year that the Xolobeni community was not adequately consulted and that a vast majority of people are against the mining. Since then, allegations have surfaced of intimidation and fraud relating to a pro-mining petition.

The Xolobeni project is touted as a potentially suitable case to take to the constitutional court to test mining legislation against constitutional provisions that lay the basis for state expropriation of land.

There are disturbing aspects related to MRC’s empowerment partner, Xolco, which replaced Ehlobo Heavy Minerals when it walked away from the deal. The R135 million that Xolco is touted to pay for its 26 percent stake is nearly three times as much as Ehlobo was to have paid for a majority stake. There is no evidence in a shareholders’ agreement that Xolco, which has strong connections to local politicians, will transfer dividends to locals as claimed.

Posted on August 14th, 2008 by Louis
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Robert Laing

SA projects vital for firm

THE Australian company given rights to strip mine the Wild Coast appears to be taking strain financially, with most of its mining ventures collapsing in red ink and litigation.

Mineral Commodities, whose chairman is Joseph Caruso (61), and managing director Mark Caruso (45), posted a A7-million (R48-million) loss last year.

The Perth-based junior miner’s future hinges on two South African projects: the controversial Xolobeni on the Wild Coast and Tormin on the West Coast. These, it hopes to finance from its 5.7percent stake in London AIM-listed Allied Gold. The department of minerals and energy’s rationale for awarding the licence looks sloppy.

The department of environment and tourism concluded its report on the environmental impact assessment that Mineral Commodities commissioned from consultants Groundwater Consulting Services saying: ‘‘The department has grave concerns with regard to the proposed mining developments in the area and objects to it.

‘‘Several crucial aspects and specialist studies are lacking. From the documentation submitted, it is clear that the accepted and adopted planning and policy guidelines for the area have not been taken into consideration, and several of the legislative requirements have not been met.

“No time frames or schedules are included to indicate whether they will be adhered to.

‘‘The department has not received the application for the listed activities in terms of the EIA regulations under the National Environmental Management Act. This alone is an almost fatal flaw in the public process to be followed.”

Besides ignoring the Deat’s rejection of the environmental impact assessment, the DME ignored a report from the SA Human Rights Commission alleging the required community support was not genuine.

Mineral Commodities said that it has been notified that it had received the mining rights, and had not heard anything further from the department.

Posted on August 14th, 2008 by Louis
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Fear ‘time bomb’ may explode among divided residents
August 08, 2008 Edition 1

Bongani Mthembu

FEAR, anger and hoping against hope. That is the mood in the community of Xolobeni, on the Pondoland coast of the Eastern Cape, after the government’s decision to give an Australian company the right to mine the environmentally sensitive dunes in the area.

There is fear violence might break out between people who are in support of the mine and those who have vowed to en-sure that the mining company does not start its operations.

While some people believe the mine will bring the much needed development in that impoverished community, those who do not want the mine are angry and hoping that the project will be abandoned.

They fear that they will lose their farms and homes. They are also afraid that their homes will be destroyed by tremors caused by mining operations.

The Department of Minerals and Energy this week granted the Australian Stock Exchange-listed mining Mineral Commodities (MRC) the right to mine a portion of the Xolobeni Mineral Sands project, along the Wild Coast.

The company was given permission to mine the Kwanyana block in the Xolobeni project, representing about 30% of the original area applied for.

The area earmarked for the mine is along the sea and includes several rivers and estuaries.

According to mining experts, the Kwanyana block contains about 139 million tons of heavy titanium producing minerals, including ilmenite, zircon, leucoxene, and rutile.

Many homes are situated just a stone’s throw away from the site and it is not clear at this stage whether people will be forced to move.

“They tell us that no-one will be forced to relocate, but we think that is a blatant lie,” said one of the residents, Mthanjelwa Mpotomela.

“Our forefathers lived in this area and we also like it because we farm here.”

He said even if people were not forced to relocate, they would be forced to leave because of tremors from the mine, adding that most of their houses were built from mud.

Sputnik Ratau, spokesman for the minerals and energy department, said if people needed to be relocated, there would be negotiations between the community and the mining company.

Mpotomela said the mine had divided the once united community into two camps, and that the situation was like a time bomb waiting to explode.

Some people in Xolobeni claimed that the death of one of the residents, Madoda Ndovela, in 2003 was linked to his opposition to the mining.

“We are worried about the animosity between people who do not want the mine and those who want it. We do not want bloodshed,” he said.

A woman, who wanted to remain anonymous because she feared for her safety and that of her family, said people were scared to voice their views about the mine.

John Clarke, a social worker and member of the Sustain the Wild Coast campaign, said they would sue the minister of minerals and energy, Bulelwa Sonjica.

“She has placed the interests of the foreign company above the interests of local people.

“We are taking this matter to court on the basis that the rights of the local people are not being taken into consideration,” he said.

Clarke also disputed the department’s suggestions that Kwanyana was the least sensitive part of the proposed mining area.

The crisis committee form-ed by Xolobeni residents is also looking to obtain a court interdict to prevent the mining.

Nonhle Mbuthuma, the committee spokeswoman, said that they were also busy with their lawyers.

“We believe we have a strong case. The minister has ignored us and we have no choice but to go to court,” she said.

Bashin Qunya, spokesman for the mining company, said that people who tried to oppose the mine would not win.

“All processes have been followed and the majority of the people are happy with the project,” he said.

Posted on August 12th, 2008 by Louis
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An announcement appeared on Monday morning ( 4th Aug) on the Australian Stock Exchange website listing for MRC Ltd (http://www.asx.com.au/asx/research/CompanyInfoSearchResults.jsp?searchBy=asxCode&allinfo=&asxCode=mrc. ) reporting that “the Department of Minerals and Energy of the Republic of South Africa.. will proceed to grant to its South African Subsidiary Transworld Energy and Mineral Resources (SA) Plty Ltd, the mining right for the Kwanyana Block within the Xolobeni Mineral Sands tenement area”. The announcement goes on to say that “the remaining areas will be held under a Prospecting Right valid to 2010 which can be extended until applications are made to convert the remaining areas to Mining Rights on a block by block requirement.” Interested and Affected Parties wait to be officially informed by DME of their decision.

SWC is extremely alarmed by this announcement. Any awarding of a mining licence is in complete contradiction to the wishes of local communities who are vehemently opposed to the mining application. The announcement raises questions about the validity of government consultation processes, and about the application of legal criteria supposed to protect communal land tenants from exploitation.

SWC is also extremely concerned that in light of the MRC statement that ‘“the remaining areas will be held under a Prospecting Right valid to 2010 which can be extended until applications are made to convert the remaining areas to Mining Rights on a block by block requirement”, that this is nothing more than an ill conceived, undemocratic, devious, manipulative, underhanded, scandalous and possibly unlawful attempt by DME to award full mining rights by stealth.
This flies in the face of all democratic processes that are supposed to protect communal land rights and protect the environment, and raises questions about DME’s commitment to democratic processes, sustainable development and poverty alleviation.

SWC is also alarmed by the announcement presenting on MRC website, prior to Interested and Affected parties being officially informed by DME. This raises questions about the impartiality and suitability of DME as a deciding party on the ROD, when the civil interests of South African citizens seem to play second fiddle to foreign corporate interests.

The threat of mining has, to date , hindered the development of eco-tourism investment in the region, and an open ended prospecting permit such as DME seem to be in favour of granting, will do little to promote equitable sustainable development initiatives that are sorely needed in the area. Awarding this highly controversial mining application to a foreign mining company, at the expense of local community livelihoods and wishes, amounts to nothing more than a plundering of South Africa’s natural resources by foreign interests, and a complete disregard by DME and government for the wishes of local community.

The announcement also raises questions about the legality of DME’s decision in light of the newly enacted Integrated Coastal Management Act, which gives DEAT unquestioned jurisdiction in RoDs that impact on coastal areas. .

The Kwanyana block represents approximately 30 % of the mining area. The Kwanyana block is situated between the Mnyameni and Kwanyana estuaries, which are both highly sensitive coastal marine environments, - but with astounding natural beauty and thus locations with considerable appeal to tourists.

SWC will respond with further details about further actions in due course.

Issued by

Lylie Musgrave
Kibao Communications
tel: 27 31 2613406
fax 27 31 2616232
mobile: 072 2970974
email: kibao@iafrica.com

Posted on August 6th, 2008 by Louis
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