[miningmx.com] — The department of mineral resources on Thursday denied a report that Imperial Crown Trading had been awarded coal prospecting rights for 162 spots next to the Vaal River, but confirmed that it had received an application from the company.
“The department of mineral resources (DMR) states on the record that; Imperial Crown Trading 289 (Pty) Ltd (ICT) does not have any existing issued prospecting or mining rights/permits in this region whatsoever but only one application for a prospecting right for coal in the Viljoenskroon area, which is still in process,” the department said.
It demanded that Media 24 withdraw the story, which appeared in Afrikaans daily Beeld on Thursday. A related report also appeared on Miningmx at the weekend.
The department said it did receive an application for prospecting rights spanning 11 farms on May 22 last year, but demanded it be revised because five of the farms fell outside the borders of the Free State.
ICT resubmitted an application for prospecting rights on six farms, and it was accepted for processing.
“However, since five of the farms applied for fell outside the boundaries of the Free State Province, the applicant was requested to exclude the said farms from this application and submit an accordingly amended plan, which was done and accepted.”
It said once the revised application was received, it emerged that prospecting rights in the particular area had already been awarded to Wits Consolidated Gold Resources Ltd (FS 206 PR) for gold, silver and uranium.
There was also an existing application for a prospecting right by White Rivers Exploration (Pty) Ltd (FS 757 PR) for copper, gold, uranium and associated minerals, which is still in process.
“However, since the two applications are both for different commodities, the application was accepted and the applicant in this case will be requested to submit a memorandum of understanding entered into between all the parties involved, before execution.”
In January, Anglo Gold Ashanti subsequently lodged an objection to the application.
The department said though this was not done within the requisite 30 days, it is being taken into account by the Regional Mining Development and Environmental Committee as they study ICT’s application.
Beeld reported that Vaal farmers were deeply concerned that their water and soil would deteriorate if mines were established by ICT, which the newspaper described as having close ties to the African National Congress.
The newspaper said environmental experts believed that coal mines next to the Vaal would prove an ecological disaster for South Africa’s most important river.
It said the department awarded the prospecting rights without notifying landowners next to the river – something that is required by law.
Mineral resources also disputed this. It said ICT had notified farmers of its application and submitted proof of consultation with landowners on June 29 2009.
