DMR ‘getting tough’ on non-compliance

[miningmx.com] — THE recent spate of punitive actions against miners which were alleged to have fallen short of regulatory requirements, should serve as warnings that the Department of Mineral Resources was getting serious about compliance.

This is according to departmental spokesperson Bheki Khumalo, who said on Wednesday the cancellation of Central Rand Gold’s mining right was just another example of the DMR “getting serious’ and “upping compliance’ in line with the Mineral Resources and Petroleum Development Act (MPRDA).

“The minister (Susan Shabangu) said at the beginning of the year that the department would strengthen itself to sanction non-compliance appropriately,’ said Khumalo. “This is what you’re seeing now.’

Central Rand Gold received notice on Monday that its mining right was cancelled for failing to fully implement its approved social and labour plan (SLP) and comply with its approved mining works plan. CEO Johan du Toit said on Thursday the group was not yet sure when the urgent court interdict it was seeking against the cancellation would be heard.

In July, operations at Platinum Australia’s Smokey Hills platinum mine in Limpopo were suspended for almost a week – also for allegedly failing to implement its SLP.

Another listed player, First Uranium, was earlier in September told its mining right for Mine Waste Solutions’ had been withdrawn. MWS is contending that it doesn’t need a new order right for reclamation activities and has carried on working. Khumalo said the department was talking with its lawyers on how to respond to MWS’ stance.

The DMR on Wednesday also released details of a court sentence imposed against the owner of Dollar Mining Trading, a mineral sands miner in KwaZulu-Natal, who was found guilty of mining without a licence and failing to comply with directives of the DMR.

Mfundo Manzi was fined R10,000, or 5 months imprisonment, and a further R50,000, or 15 months imprisonment; the latter of which was suspended for five years by the Umlazi Magistrate Court.

Khumalo said the department has identified 116 cases of illegal mining in KwaZulu-Natal alone.

“The DMR, working with the National Prosecuting Authority and the Asset Forfeiture Unit.are currently working on a strategy to ensure that assets of these illegal operators are attached following due process,’ read a departmental statement on the issue.

“These enforcement measures will also apply to current right holders who do not comply with the provisions of the law and who make promises in their social and labour plans, mining works programmes as well as the Environmental Management Plans which they wilfully fail to implement.’

Legal expert Hulme Scholes of law practice MalanScholes said he has noticed the department stepping up enforcement on health and safety issues, as well as prospecting right conditions following the recent rights audit.

“They’ve become very tough on Mining Health and Safety Issues,’ he said.

[The article has been corrected. The original version read that First Uranium was ordered to cease operations at Mine Waste Solutions.]