By ROUX VAN ZYL

Finance Reporter – Dispatch Online

THE Australian stock exchange-listed miner that plans to mine titanium along the Wild Coast has cleared another hurdle – the national Department of Minerals and Energy has accepted its mining right application.

This effectively allows Mineral Commodities (MRC) to embark on an official public participation process to discuss the Xolobeni Mineral Sands Project with all affected and interested parties.

Environmentalists yesterday reacted with dismay, saying the acceptance of the mining right application, which promotes dry mining in the environmentally sensitive Pondoland, was “short-sighted”.

The project is spread over a 22km stretch of pristine coastline between the Wild Coast Sun and Mkambati and is estimated to contain in excess of nine million tons of ilmenite – worth R11 billion.

Ilmenite is the most important ore needed to manufacture titanium.

Xolobeni Sands spokesperson Pat Roberts said the acceptance was a significant step in a long process.

“We still have a long way to go. The next step will be to host a number of public meetings to inform interested parties on the mining project and to answer questions,” she said.

Roberts said the first meeting will be held on-site next Thursday.

The Daily Dispatch is privy to a copy of the acceptance letter, dated April 25, that requests MRC to hand in a scoping report by May 22 and finalise its public participation process and environmental impact assessment by October 22.

However, social worker John Clarke, who works in the community, believes the project is unlikely to go ahead.

“MRC still has a six-month review period before the mine is finally approved. The company is carrying too much baggage for the project to succeed,” he said.

Clarke, who laid a complaint with the Human Rights Commission against MRC, said that not everyone in the affected communities supported the mine.

He also pointed out that MRC wholly owns Erebus PLC, which in turn owns a Sierra Leone-based diamond mining company, Kariba Kono, that allegedly used “questionable” mining methods.

Bishop Geoffrey Davies, from the Sustaining the Wild Coast initiative, said the department had been shortsighted and narrow-minded in accepting the mining application.

“They are not looking at the society’s needs and their children’s future. The project definitely has the potential to destroy tourism in the area. It is nonsense to believe eco-tourism and mining can co-exist,” he said.

A 2005 report compiled by Wild Coast Project stated that the mine would need a R1,4bn capital injection including the construction of a mineral separation plant and smelter.

The project could provide up to 300 direct jobs, fast-track infrastructure roll-out in the rural area and “possibly” bring a titanium slag smelter to East London.

Titanium is a versatile metal used in the aerospace industry, piping for nuclear plants and prosthetic hip joints.

Since MRC was awarded a prospecting permit for the area in 2002 it has bought a South African company, Transworld Energy and Mineral Resources, to drive the project locally.

MRC entered into a BEE agreement with the community-based Xolobeni Empowerment Company (Xolco), which will pay about R126 million ($18m) for a 26 percent stake in the company when the mining commences.

Xolco is headed by members of the Amadiba community who use the land for farming.

The proposed mining is set to take place within five blocks, each named after a river at its southern boundary – Mtentu, Sikombe, Kwanyana, Mnyameni and Mphalane.

Posted on May 3rd, 2007
Filed under: Newspaper and Media