De Beers welcomes rehabilitation probe

DE BEERS Consolidated Mines (DBCM) has welcomed an investigation which last week found that billions of rands, earmarked for the rehabilitation of abandoned mines, are currently being held by the Department of Mineral Resources (DMR) while land that has been tapped of its wealth remains unrestored.

The data-driven investigation was conducted by Oxpeckers, an investigative journalism unit focusing specifically on environmental issues, over the course of nearly two years and found that nearly R60 billion is currently being held in funds intended for the rehabilitation of mines across the country.

In the Northern Cape alone, in excess of R2.5 billion is held in financial provisions - an accurate figure could not be determined after the DMR in the Province failed to release all the relevant data despite requests under the Promotion of Access to Information Act (PAIA) to do so.

Earlier this week, spokesperson for DBCM, Tom Tweedy, said that it was encouraging that such investigations were taking place.

“It is important that such investigations include people with a commercial understanding of the economics of mining as well as the legal obligations associated with mining, post-mining and the sale of mines with their related resources and rehabilitation and other obligations, including social,” he said.

According to Tweedy, as of December last year, De Beers had provided bank guarantees and insurance guarantees for rehabilitation totaling R1.139 billion, of which R938 million is for Venetia Open Pit, Voorspoed and Kimberley mines.

“The balance is for the mining right we still hold of the six rights making up what was Namaqualand Mines,” he explained. “The other provision is for the now closed Oaks Mine where rehabilitation has reached its conclusion.”

Historical

He emphasised that DBCM operations practiced rehabilitation on an ongoing basis.

“De Beers rehabilitates historical areas which have been mined-out, and leave areas only if they are potentially viable for future operations,” he said.

“This all has to be agreed to and is not a unilateral decision of the company. It is in fact against the law to sterilise resources that still have viable resources.

“The reason for leaving them exposed, other than being covered makes them safe and protects from illicit diamond digging, is because the costs for another miner in the future to profitably remove the overburden will be more than the revenue they earn for the diamonds recovered.

“One destroys the potential of another to earn an honest living. “