[miningmx.com] — IMPERIAL Crown Trading (ICT), the politically connected group that controversially acquired mineral rights to 21.4% of the world-renowned Sishen Mine, has gained two prospecting licences to 354 sites in the water-rich north-western Free State on the banks of the Vaal River.
The areas run directly alongside AngloGold Ashanti’s biggest South African mines, but the licences are valid only for the prospecting for coal.
State-controlled mining company African Exploration Mining and Finance Corporation (AEMFC) has also received several prospecting licences for coal in the same environment, after old-order mineral rights lapsed on April 30 last year.
The community in this ecologically sensitive area on the banks of the Vaal River and the Renosterspruit are now worried that their environment could be destroyed by coal mining, just as Mpumalanga’s water resources have been destroyed by mining over the past five years.
There is almost no farm in the region that has not been affected by these notices, Stephen Kruger of Witfontein – alongside the Renosterspruit – said on Friday.
Quintus Deacon, who owns one of the biggest and most valuable farms in the area, together with his mother and two brothers, received no notice that at various points on his 2 189ha farm, ICT has been licensed to do prospecting.
ICT has obtained at least two prospecting licences with a total of 254 prospecting points. The applications for these were submitted on May 5 last year – the second working day after all old mineral rights expired and reverted to state hands, unless their owners had applied for renewal.
ICT has close ties with President Jacob Zuma’s son, Duduzane Zuma. One of ICT’s founder shareholders is Deputy President Kgalema Motlanthe’s close friend, Patience Mtshali.
In August documentary evidence that ICT representatives had used forgery to apply for mineral rights in the world-famous Sishen Iron Ore Mine at Kathu was lodged with the High Court in Pretoria.
The value of the mineral rights awarded to ICT in this way was estimated at R9bn.
STATE MINER IN PLAY
An analysis of the list of mineral rights that the department of mineral rResources has awarded since May last year also showed that AEMFC, which was identified as a state mining vehicle 18 months ago, obtained between 26 and 28 prospecting licences in this ecologically sensitive area.
With these licences the AEMFC is able to prospect for coal at more than 2 000 sites.
Documents in Sake24’s possession showed that AEMFC had applied for some of these rights even before they expired on April 30 2009. The rights were awarded to it on May 4, the first working day after the rights had lapsed.
AEMFC is exempt from certain requirements for the awarding of mineral rights, including the submission of environmental impact studies.
The area has for years been noted for its coal deposits. About 30km to the south-west there previously was an underground coal mine and power station, Vierfontein. The power station and mine were closed down years ago and the power station largely demolished.
Boreholes sunk for water in the environment are often unusable as the water contains coal residue.
No prospecting was done further north, probably because of the ecological sensitivity of this water-rich area.
Viljoenskroon attorney Dawid Senekal said that many farmers in the district had received notices from various consultant companies over the past year saying that application had been made for prospecting rights over their land, or even that the prospecting rights had been awarded.
In not one of these cases had any of the farmers been conferred with or consulted in advance, as prescribed by legislation, prior to the awarding of such licences, said Senekal, who is acting for several of the farmers.
In most instances Senekal has written to the consultants, saying that the prescribed procedures were not followed in the applications for prospecting rights, and the rights could therefore be invalidated.
In only one case had legal action been initiated and the application for the prospecting right was eventually rejected, said Senekal.
On Friday Jagdish Parekh, who owns 50% of ICT, said he might offer details about the company’s intentions with these rights next week.
– Sake24
