SA state miner mired in more controversy

Brendan Ryan | Fri, 21 May 2010 11:07

[miningmx.com] -- THE latest conservation area to be targeted by the state-owned mining company African Exploration Mining & Finance Corporation (African Exploration) is the Nylsvley reserve near Modimolle in Limpopo Province.

This move is despite the furore already kicked up in conservation and environmental circles by African Exploration’s controversial moves in applying for prospecting rights around the sensitive Chrissiemeer region in Mpumalanga.

African Exploration has already been forced to drop proposals to go prospecting for base metals in part of the winelands region of the Western Cape because of outrage from the affected wine farmers as well as the regional tourism authorities.

Nylsvley is arguably the most important conservation asset in Limpopo Province outside of the Kruger National Park and it ranks on a par with the Mapungubwe National Park.

South African National Parks tried several years ago to acquire Nylsvley to turn it from a provincial reserve into a national park but were fought off by the Limpopo provincial government which has since invested heavily in Nylsvley with a view to making it a major ecotourism destination.

Nylsvley protects a section of the floodplain of the Nyl River which floods erratically every few years. When it does flood the reserve becomes a mini-Okavango swamp and the breeding ground for tens of thousands of water birds including rare species found almost nowhere else in South Africa.

The reserve is also home to a valuable breeding herd of rare roan antelope and a diverse range of mammals.

According to a notice published by independent environmental consultants Digby Wells and Associates on May 14, African Exploration has applied for the right to prospect for coal on certain properties near the Nylsvley reserve.

Crucially, four of the farms applied for are contiguous with the reserve and situated upstream of it. That means any pollution from exploration drilling or from a mine – should one be developed – will be washed downstream to pollute the reserve.

Mining sector geologists have expressed surprise at the projects being taken up by African Exploration as they seem to involve ground avoided by mainstream mining companies because of the associated environmental issues or ground that has already been shown to have poor development potential.

One industry source commented, “these guys (African Exploration) are babes in the wood. It looks like they are being taken on a merry chase by unscrupulous operators bringing them prospecting rights that are worthless.”

According to Waterberg resident – and former head of new business for Kumba Resources (now split into Exxaro Resources and Kumba Iron Ore) – Richard Wadley, African Exploration appears to be after coal contained in the Springbok Flats coalfield.

Wadley commented, “the Springbok flats field was drilled extensively by the then Government Geological Survey over a 30 year period following the Second World War.

“A substantial resource of poor to high grade coal was defined in three blocks of which the central one lies to the east of Nylsvley.

“In the 1980’s the field was examined in detail by various mining companies and Mintek but was found to be commercially unattractive. Main reason for this was that the coal was found to be very closely associated with uranium mineralisation, in places at quite high grade, but no technology was available that could separate the one from the other.

“Were the coal to be burned without removal of the uranium, potentially serious radioactive fallout could result. Recently, the field has been receiving renewed attention from mining companies, especially junior players,” Wadley said.

“Even if commercially exploitable coal or uranium is not delineated in the area the exploration process itself – which must involve an extensive grilling grid – could lead to serious environmental pollution of the surface and ground water that flows into the Nylsvley basin.

“This could have a potential devastating impact on the important birdlife that frequents the wetland given the nature of the combined coal/uranium mineralisation,” Wadley said.

Wadley pointed out African Exploration’s amended application was also strange given what was already known about the Springbok Flats deposit.

African Exploration had dropped farms downstream of Nylsvley which did have the potential to be underlain by coal but had kept the farms upstream of Nylsvley which have “little or any” coal potential.

Asked about this African Exploration CEO Sizwe Madondo told Miningmx, “we have done our own internal work on the Nylsvley area.”

Asked why African Exploration seemed to be targeting conservation areas Madondo replied, “we are not looking to ride roughshod over anyone. We apply for the prospecting rights and then follow the proper due process of consultation and assessment.

“That process will verify all the issues including the environmental aspects. We are presently waiting to do consultations in the Chrissiemeer area. “

Wadley highlighted another strange application by African Exploration which was for iron ore, manganese ore and andalusite on the farm Woodstock 161 which sits adjacent the Mokolo Dam Nature Reserve near Lephalale.

He commented, “this is a barren Waterberg sandstone formation. There’s nothing there. Any geologist knows that. You have more chance of finding a whale in the Mokolo dam.”