State flags its own slack mine rehab policing
THE Department of Mineral Resources is failing to adequately police mine rehabilitation funds, leaving taxpayers to absorb a multibillion-rand shortfall, a government report has revealed.
The 86-page report comes amid criticism of the department’s role in the transfer into a foreign bank account of R1.3-billion in mine rehabilitation funds attached to a mine owned by the Guptas and President Jacob Zuma’s son Duduzane.
The department has denied any wrongdoing in relation to the Optimum fund, but officials have regularly acknowledged difficulties in monitoring mining compliance.
According to the report, finalised over a year ago but yet to be released by the Department of Planning, Monitoring and Evaluation, nearly half of South African mines do not set aside enough money to clean up their mess. Other worrying report findings include that:
Mine closure certificates are seldom issued;
The Department of Mineral Resources lacks the necessary capacity, staff and legal expertise to effectively do its job; and
The “guideline” used to determine financial provision for rehabilitation is outdated.
The report appeared recently on the Department of Environmental Affairs website. In 2014 this department assumed control for legislation on environmental governance of mines, but implementation of new regulations has been left with the Department of Mineral Resources.
It is unclear to what extent any of these problems has been resolved since the report was finalised. Mineral resources has yet to publish updated compliance or monitoring figures.
The Sunday Times has previously reported on compliance irregularities related to two mines in the stable of Gupta/Zuma-owned Tegeta.
It also emerged this week that mineral resources has yet to release crucial documents relating to the rehabilitation fund of the Gupta-owned Optimum mine, despite a successful Promotion of Access to Information application by environmental watchdog group the Centre for Environmental Rights.
Mineral resources agreed in May to hand over documents relating to the Optimum mine near Middelburg, Mpumalanga, following the application, but has not done so.
These documents could answer questions about the transfer of the Optimum mine rehabilitation fund into the local branch of the Bank of Baroda. The transfer was one of several suspicious transactions recently flagged by the financial intelligence centre and subsequently listed in an affidavit submitted to court by Finance Minister Pravin Gordhan.
Commenting on the Department of Planning, Monitoring and Evaluation report, Centre for Environmental Rights executive director Melissa Fourie said mineral resources’ poor track record on the environmental impact of mining was a major concern.
She said the department “shouldn’t have this function because of the inherent conflict between promoting mining activity and policing it”.
“Despite being responsible for [this] since at least the early 1990s ... the DMR still lacks expertise and experience in managing environmental impacts.” The organisation also questioned the department’s role in the Optimum mine rehabilitation fund, claiming the department had refused to answer crucial questions about the fund — such as whether it had been used to help the Guptas finance the purchase of the mine.
Mineral resources has yet to respond to Sunday Times queries, either about Optimum or the report. In a statement on its website it points out that the Optimum matter is before the courts and therefore sub judice.
“Furthermore, all parties are urged to act responsibly and avoid making unfounded allegations that have the effect of bringing the department into disrepute and as a result, the department reserves its rights to take appropriate action in order to protect its integrity,” it says.
The report and Optimum saga coincide with growing concern over the estimated 6 000 derelict or abandoned mines in South Africa.
Affected landowners in Mpumalanga fear the Guptas may leave South Africa without cleaning up their mess.
Oakbay/Tegeta did not respond to queries but referred the Sunday Times to a statement in which they deny tampering with the Optimum fund.
It is imperative that the facts around the Optimum Mine Rehabilitation Trust be established