[miningmx.com] — THE Department of Mineral Resources’ (DMR’s) decision to let Central Rand Gold (CRG) continue with mining has removed a major obstacle for its counterparts at Water Affairs (DWA) to deal with acid mine drainage in the Witwatersrand’s Central Basin.
CRG announced on Monday the DMR won’t oppose its application to set aside Mines Minister Susan Shabangu’s cancellation of the mining right. CRG’s right was cancelled in September for not giving effect to its social and labour plans, the DMR said.
At the time, DWA senior regional manager Marius Keet told Miningmx that CRG’s closure jeopardised the department’s only viable strategy to deal with rising acid mine drainage levels in the Central Basin, given that the firm was the area’s sole remaining underground operator.
CRG in September agreed with the Trans Caledon Tunnel Authority (TCTA) – the state’s appointed project managers – to utilise CRG’s pumps to de-water and maintain the Central Basin. The company had earlier ordered Ritz submersible pumps from Germany.
Keet told Miningmx on Monday the department was “very relieved’ that CRG and the DMR managed to settled their dispute, although DWA and CRG still had to finalise an agreement.
“We (DWA) need to have the water below the environmentally critical level (around 180m) but CRG needs it below 400m,’ said Keet. “We still need to do a deal on who’ll pay the incremental costs.’ The construction of a new high density sludge plant with a capacity of 84 million litres per day, as well as the transfer of treated water via a pipeline to Elsburg Spruit, are also on the cards.
CRG CEO Johan du Toit was not immediately available for comment.
As for the more critical Western Basin, where the issue of acid mine drainage was brought to the boil in September 2002 when water started flowing from an abandoned shaft in the Randfontein area, Keet said the DWA was aiming to upgrade Rand Uranium’s treatment plant to handle 30 mega litres per day by February.
The mine, operated by Gold One International, has a current capacity to treat 12 mega litres per day. Keet said around 20 mega litres are decanting in the Western Basin at the moment.
In the Eastern Basin, Gold One International in June moved its training facilities from the Sub Nigel shaft 1 to Modder East, citing fears that acid drainage could swamp the historical mine.
The water level in the Eastern Basin was previously maintained at a depth of around 700m at Grootvlei’s number three shaft. Keet said the department was monitoring the water level; although it posed no immediate threat to the environmentally critical level.
SHARE PRICE SURGE
CRG’s JSE-listed shares surged 200% on Monday following the announcement, trading at 15c during early afternoon trading – up from 5c. The company said it would continue to discuss its social and labour development plans with the DMR “to agree a plan that is more appropriate for Central Rand Gold’s revised mining plans’.
