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
Filed under: Newspaper and Media