[miningmx.com] – THE prospect of an agreement between the
government and South Africa’s gold mining industry on how to treat the threat of acid
mine drainage (AMD) has been given a boost after the two sides met to discuss a
compromise this week.
Niel Pretorius, CEO of DRDGold, has met with the Department of Water Affairs’ Marius
Keet, a discussion that Pretorius described as constructive. “We have proposals to
work on,’ said Pretorius. “Let’s hope they get considered. It’s best that we’re talking.”
Said Keet: “We are negotiating something, but I can’t give more details for fear of
derailing it.’
Keet added, however, there were no discussions about resuscitating the Western
Utilities Corporation (WUC) proposal for AMD. “That was rejected last year already,’
he said.
DRDGold was a member of WUC, which was founded with Harmony Gold and Mintails
in 2005. WUC was self-funded and had been subject to thorough technical tests, but
it was rejected by Water Affairs in favour of a R1.5bn proposals by Trans-
Caledon Tunnel Authority (TCTA), the organisation instructed by government to find
an alternative solution.
DRDGold said recently that it had requested guarantees from TCTA that if it assisted
with its proposals, the company would not be at risk of further downside costs than
contained in the WUC idea. This development drew the ire of the water and
environmental portfolio committee in parliament. It construed DRDGold’s request as
tantamount to bribery.
Pretorius told Miningmx that it was seeking a public clarification of the
committee’s order that the company pay “for every damn thing’ – a comment that
Pretorius said had caused some unease with his shareholders.
The parties have limited time, however. TCTA is currently working on a short-term
solution to AMD which could see contaminated water at some 174m below surface by
early next year, just below the environmentally acceptable level.
