Allegations untrue, says Mantashe

Mineral Resources Minister Gwede Mantashe yesterday dismissed allegations that his department was trying to bulldoze through the mining development in Xolobeni after he visited the village in Mbizana, Eastern Cape, to listen to concerns around proposed mining in the Wild Coast area.

This comes after an altercation ensued over the weekend between Mantashe and members of the Amadiba crisis committee, which opposes the mining of titanium in their area by Transworld Energy and Mineral Resources, a wholly-owned subsidiary of Australian corporation Mineral Commodities.

Mantashe said that out of 10 community organisations that participated in the meeting – including the Xolobeni Development Trust, Amadiba Development Forum, the Eastern Cape Contractors Forum, Bizana Chamber of Commerce – only Amadiba crisis committee was opposed to the mining exploration in the area.

“Ten organisations made presentations. Of these, nine were for the development of both mining and tourism, and one, Amadiba crisis committee, made a presentation against mining development. Ward 25 in Bizana, of which Xolobeni is part, is the poorest in the area with high levels of illiteracy and dependence on social grants,” Mantashe said.

“The community wants to use tourism and mining to develop itself further. It’s not tourism versus mining. It’s tourism and mining. It is important that consultation is allowed to proceed peacefully, so a final determination can be made.”

Mantashe also said he has established a team that will from Monday go back to calm tensions that have emerged over current and future coal and heavy-mineral mining plans‚ including a high court case in which residents are demanding the closure of the Somkhele coal mine on the border of the Hluhluwe-Imfolozi Game Reserve in KwaZulu-Natal.

Mantashe was speaking during a media briefing where he presented a revamped Mining Charter with legislative changes.

Mantashe said existing mining right holders who achieved a minimum of 26% black ownership in their ventures were recognised as compliant for the duration of the right, but not the life of the mine.

“The right holder will be expected to increase their minimum BBBEE (broad-based black economic empowerment) shareholding to 30% within five years,” Mantashe said.

Mantashe said the charter was not perfect and would not make all stakeholders happy, but was a consensus that everyone could live with after intensive engagements with mining companies, financial institutions, the legal fraternity, investors, mining communities and the Cabinet. – ANA