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
Filed under: Newspaper and Media