Nuclearisation of Africa - Conference in pictures

MINING (153)

Please find the following attached for download:

1. Basel Gold Day: How to obtain clean gold - the consumer perspective

2. Basel Gold Day: Presentation by the FSE

Attached for download:

1. ASM Policy 2020
2. FSE's Submission

FSE's comments are attached for download.

FSE IN SA MINING

Monday, 17 August 2020 17:32

The FSE contributed to the article titled “Caught between a rock and hard place” by Nellie Moodley on page 33 of the magazine.
An advertisement of the FSE’s activities appears on page 14 of the magazine.

The concerted efforts and submissions to the Department of Mineral Resources and Energy (DMRE), the Applicant and its appointed Environmental Assessment Practitioner (EAP) by the Protect Vaal Eden Committee, Vaal Eden community, and the Federation for a Sustainable Environment have resulted in the withdrawal of the application of an amendment of the environmental authorisation and environmental management programme for the Sweet Sensation Sand Mining operation adjacent to the Vaal River.  The EAP was notified by the DMRE that further specialist studies would be required to determine the impact the application for a screening plant and process would have on the environment and that a Regulation 31 amendment process, which involves a public participation process, must be undertaken.  The FSE welcomes the DMRE’s notification.

Notification letter attached for download

Pelicam Award for Jozi Gold

Monday, 20 July 2020 22:50

The Pelicam Film Festival in Rumania has awarded Jozi Gold a Special Mention. 

Mind the Gap consortium launched the new website www.mindthegap.ngo featuring five strategies corporations use to avoid responsibility for human rights abuses: 1.Constructing deniability; 2. Avoiding liability through judicial strategies; 3. Distracting and obfuscating stakeholders; 4.Undermining defenders and communities;  5. Utilising state power. These harmful strategies manifest themselves in a wide array of actions by corporations that obstruct justice, distort the facts and frustrate remedy for affected communities.

 

The Mintails case will be part of the evidence base for this website and Lonmin’s involvement in the Marikana massacre is also included. The case studies featured on the new website highlight the wide prevalence of harmful corporate strategies in practice and amplifies the urgent need to close the governance gaps that are sustaining a global system of corporate impunity.

 

Subjoined hereunder is the report on Mintails.

in South Africa

CASE STUDY: MINTAILS’ STRATEGIES OF DISENGAGEMENT IN SOUTH AFRICA


Photo: SOMO

Last updated: 10th July 2020

The bankruptcy case of the South African mining company Mintails provides an example of irresponsible disengagement by investors, leaving the state of South Africa and the local communities around the mines with the burden of uncovered post-mining environmental rehabilitation costs.

Mintails S.A. (Mintails), a fully-owned subsidiary of Mintails Limited (MLI), held three mining rights in South Africa – West Wits Mining, Minerals and Mining Reclamation, and Mogale Gold. In the 2010s, Mintails was granted these mining rights by the Department of Mineral Resources (DMR), subject to adequate provision for environmental rehabilitation liability. However, the mining rights were never fully issued, as Mintails failed to provide multiple financial and social provisions.[1]

Despite the lack of a valid mining licence, Mintails was allowed to continue mining operations, amid numerous documented complaints of environmental contraventions.[2] After several statutory notices from DMR, in which the department asked Mintails to comply with environmental regulations and to provide adequate remedy for the damages it had caused, the Director General of DMR directed Mintails to provide a quarter of all the due costs in October 2014. The company was required to submit a six-month payment plan to provide the remaining sum.[3] Unable to raise this money, Mintails filed for business rescue a year later.[4]

Several actions by MLI and Mintails resulted in diminished environmental liability. First, Mintails hired two consultants who provided substantially downgraded estimates of the company’s liability for the environmental harms originating from its mining activities.[5] Second, in the midst of a business rescue, MLI divested itself from Mintails by proceeding to spin-off its South African subsidiary.[6] MLI was then renamed Orminex Limited,[7] completing what looks like a manoeuvre to avoid liability for the environmental reparations owed by Mintails.[8] Eventually, Mintails filed for liquidation during the summer of 2018,[9] leaving the state of South Africa and the local communities around the mines with the financial burden to cover post-mining environmental rehabilitation costs, estimated at over R460 million (approx. 35 million US$).[10]

As multiple sources argue, this turn of events could have been foreseen as Mintails had recognised that its activities could lead to bankruptcy. The company nonetheless decided not to secure the funds it owed for environmental repairs.[11] MLI’s separation from its South African subsidiary Mintails can be interpreted as a sign that the company aimed to avoid liability for the environmental damages created by its subsidiary.

Despite the South African Parliament recommending prosecution and civil suits on company directors and shareholders in their personal capacities so that some of the liability owed could be recovered, the National Prosecuting Authority has been silent on the matter to date. Observers have pointed out that this is unlikely to change in South Africa’s mining-dependant environment.[12]

In an attempt to achieve environmental restoration, the Federation for a Sustainable Environment (FSE) filed a lawsuit to compel relevant government departments to hold companies and directors in the Mintails group to account for the environmental restoration costs. The first hearing is expected to take place on 12 August 2020.[13]

[1] South African National Assembly, “Report of the Portfolio Committee on Mineral Resources on its oversight visit North West and Gauteng on the 13-14 September 2018, dated 07 November 2018”, Announcements, Tablings and Committee Reports (Cape Town: Parliament of the Republic of South Africa, 2018), 22-52, https://dc.sourceafrica.net/documents/118553-Portfolio-Committee-on-Mineral-Resources-Final.html (accessed November 4, 2019).

[2] Gauteng Regional Head Office of the Department of Water and Sanitation of the Republic of South Africa, “Compliance Inspection for Mintails Mining SA Ltd: Mogale Gold,” December 18, 2014, https://dc.sourceafrica.net/documents/118409-DWS-Inspection-Report.html(accessed November 4, 2019); Mariette Lifferink and Lucien Limacher, “Presentation to the Government Task Team on Mintails’ Alleged Environmental Contraventions,” April 19, 2018, https://s3-eu-west-1.amazonaws.com/s3.sourceafrica.net/documents/118408/LRC-FSE-GTT-PRESENTATION-MINTAILS.pdf (accessed November 4, 2019).

[3] South African National Assembly.

[4] Lake, David, “Business Rescue Plan: Mintails Mining SA Proprietary Limited”, Mintails Gold SA Proprietary Limited and Mintails SA Randfontein Cluster Proprietary Limited (Johannesburg: Lake Strategic Solutions, 2016), 88., https://s3-eu-west-1.amazonaws.com/s3.sourceafrica.net/documents/118411/BUSINESS-RESCUE-PLAN-161213-MSARC-Amended.pdf (accessed November 4, 2019).

[5] South African National Assembly.

[6] It is not completely clear which party purchased Mintails S.A and how the spin-off was eventually realised. The report by the Business Rescue Person David Lake mentions a shift of interests from Paige Limited to Mvest Capital, while the news website Businesslive mentions Paige as the sole creditor after liquidation. See point 5 and 6 in:  David Lake, “Notice in terms of sections 132(3), 141(2)(a)(i), 144(3)(a), 145(1)(a) and 146(a) of the companies act, 2008″, Lake Strategic Solutions, JohannesburgAugust 1, 2018, p. 2, https://dc.sourceafrica.net/documents/118415-180801-Notice-to-Affected-Parties-Mintails.html (accessed November 4, 2019) and Mark Olalde, “Mintails directors may face criminal charges”, December 11, 2018, Businesslive, https://www.businesslive.co.za/bd/national/2018-12-11-mintails-directors-may-face-criminal-charges/ (accessed November 4, 2019).

[7] James Thackray, “Mintails Limited: Effectuation of Deed of Company Arrangement,” HQ Advisory, June 6, 2017. (accessed November 4, 2019); Orminex Limited. “Orminex: 31 March 2018 Quarterly Report,” March 31, 2018. https://orminex.com.au/re-listing-update-and-change-of-asx-code/. (accessed June 21, 2020).

[8] In its email reply responding to a request to review this case study, Orminex writes: “we purchased the listed entity [MLI] as a shell company and have never had any association with the South African subsidiary [Mintails South Africa] referred to in your recent email correspondence” (email dated 5 February 2020). The research team has not been able to verify this information, although Mintails’ 2017 annual report, p.4, makes clear that MLI was recapitalised, possibly by new shareholders: https://orminex.com.au/category/annual-reports/

[9] Lake, David, “Notice in terms of sections 132(3), 141(2)(a)(i), 144(3)(a), 145(1)(a) and 146(a) of the companies act, 2008”.

[10] Lake, David. “Notice in Terms of Sections 132(3), 141(2)(a)(i), 144(3)(a), 145(1)(a) and 146(a) of the Companies Act, 2008,” 1 August 2018. https://dc.sourceafrica.net/documents/118415-180801-Notice-to-Affected-Parties-Mintails.html (accessed 21 June 2020).

[11] Bega; Olalde and Matikinca.

[12] South African National Assembly; Mark Olalde and Andiswa Matikinca, “Directors targeted for Mintails mess,” Oxpeckers Investigative Environmental Journalism, December 2018, https://oxpeckers.org/2018/12/mintails-directors -targeted/ (accessed 4 November 2019); Sheree Bega, “Illegal miners hit Mintails mine on West Rand,” IOL News, 1 June 2019, https://www.iol.co.za/ saturday-star/watch-illegal-miners-hit-mintails-mine-on-west-rand-24637889 (accessed 4 November 2019).

[13]  The federation for a sustainable environment. “FSE’s Notice of Motion and Founding Affidavit: Minitails Group,” September 6, 2019. https://www.fse.org.za/index.php/mining/item/703-fse-s-notice-of-motion-and-founding-affidavit-mintails-group (accessed June 21, 2020).; Bega, Sheree. “A Battle to Hold Mining Company Accountable.” IOL News, February 26, 2020. https://www.iol.co.za/saturday-star/a-battle-to-hold-mining-company-accountable-19518065 (accessed June 21, 2020).

 

 

Please visit www.mindthegap.nog  

 ANNEXURE G ( FINAL RQOs - UPPER VAAL) - attached for download.

ANNEXURE B (NATIONAL WATER RESOURCE STRATEGY)
ANNEXURE C (IVRS RECONCILIATION STRATEGY)
& D (NEMA FINANCIAL REGULATIONS) - attached for download.

MINING

BASEL GOLD DAY - HOW TO OBTAIN CLEAN GOLD: THE FSE'S PRESENTATION

Please find the following attached for download: 1. Basel Gold Day: How to obtain clean gold - the consumer perspective 2. Basel Gold Day: Presentation by the FSE

PROPOSED ARTISANAL MINING POLICY - DMRE'S PRESENTATION AND FSE'S SUBMISSION

Attached for download: 1. ASM Policy 20202. FSE's Submission...

SA NEWS

FSE - DONATION OF TREES AND TREE PLANTING IN SIMUNYE, WEST RAND IN ASSOCIATION WITH SOUTH DEEP MINE

The FSE, in association with Gold Fields’ South Deep Mine, donated 40 white Karee Trees (Searsia penduline) during Arbor Week to the mining affected community of Simunye in the West Rand and participated in the tree planting ceremony with the community of Simunye, the local Municipality and officials from South Deep Mine.  The FSE also delivered a presentation during the ceremony.

"Varkies" gou op hok, maar als nie pluis | Beeld

Article also available for download as an attachment.

Radon Alert - Carte Blanche

Millions of South Africans are exposed to radioactive radon gas in their homes and workplaces every day, as the naturally occurring gas escapes through cracks in the earth. The second leading cause of lung cancer in several countries, radon breaks down and when inhaled, decaying atoms emit alpha radiation that can damage the DNA. There are no safe levels of radon concentration. The United States Environmental Protection Agency emphasises any radon exposure has some risk of causing lung cancer. Carte Blanche investigates why South Africa has no regulations to protect against radon accumulation in the home and what you can do to test your home and prevent lung cancer.   Watch the video here.

WITS Economics & Finance Courses: Mining for Development: The Taxation Linkage

Economics & Finance Courses at the University of the Witwatersrand. Mining for Development: The Taxation Linkage - Understand taxation for development and sustainability in mining. View the course here. Enrolment starts on the 7th of October 2019.

WATER

The Federation for a Sustainable Environment’s ongoing role in addressing the sewage pollution in the Vaal River

‘People the same as pigs’ in the VaalBy Sheree Bega | 16 Oct 2020 Foul: Pigs root in sludge in Emfuleni municipality. (Photos: Delwyn Verasamy/M&G) Clutching her one-year-old son, Monica Ndakisa jumps onto a brick to avoid the sewage that runs like a dark stain across the passage in her home.  “We’ve lived like this for years,” she says pointing to one of the culprits: her blocked toilet, which causes sewage to pool into nearly every room of her home in Sebokeng hostel in the Vaal. “The smell is too terrible.” It’s worse outside. Her small garden is submerged in a sickly, grey sewage swamp. To stop the human waste from seeping inside, Ndakisa has built a concrete barrier at her front door. But it’s futile. “My five-year-old son was in the hospital for two weeks with severe eczema and they told me it’s because of all this sewage. It makes us cough all the time. It’s so depressing to live like this.” Samson Mokoena, of the Vaal Environmental Justice Alliance (Veja), shakes his head. “It’s chaos. You can’t allow people to live in such conditions. The government is playing with our people.” Ndakisa’s neighbour, Maphelo Apleni, has used pipes to divert the stream of sewage from his garden. “It never stops,” he says grimly. “We have a municipality [Emfuleni] that doesn’t care about us.” Mziwekaya Mokwana points at a sewage-filled furrow clogged with litter where pigs are feeding. “This is no better life,” he says. “People are the same as pigs here.” Sewage in Vaal River system  Last month, the human settlements, water and sanitation department said it would take at least another three years to minimise and eventually stop the sewage flowing into the Vaal River system. In a recent presentation, it states how “design treatment capacity is at its limit, housing development investments are delayed and there are negative environmental and health impacts”. Ageing infrastructure is to blame for sewage spillages, coupled “with a lack of operation and maintenance investment” as well as theft and vandalism.  It will cost about R2.2-billion “to have a sustainable impact on the Vaal River catchment within Emfuleni local municipality”. The department’s plan aims to safeguard infrastructure; repair the bulk network to eliminate spillages, key and critical pump stations and rising mains; refurbish wastewater treatment works “in an attempt to comply with discharge licence conditions”; and achieve operation and maintenance requirements. But Maureen Stewart, the vice-chairperson of Save the Vaal (Save) is sceptical. She says there is no political will to tackle the crisis. “These problems go back over 12 yearsand reached crisis proportions when the system collapsed in 2018. The result is some 200 million litres of raw or partially treated sewage entering the Vaal River and its tributaries daily.” Stewart warns that it’s an ecological disaster that also affects agriculture and has serious health implications for people living above and below the Vaal Barrage Reservoir, which is 64km long and used to supply Johannesburg with water but is now too polluted to do so.   She says the Emfuleni municipality has been under Gauteng’s administration since mid-2018 and, despite promises, the status quo remains — unbridled sewage pollution of the Vaal River and Emfuleni.  “The Ekurhuleni Water Care Company (Erwat) was appointed to take over in 2019 and were given funding and spent R179-million. Their contribution was to unblock pipes and remove 50 tons of rubbish from the system. This opened the pipes but, as the pump stations and the three wastewater treatment plants remain dysfunctional, there has been no improvement. Raw sewage continues to flow into the Vaal River and into the streets of Emfuleni.”  Monica Ndakisa sweeps overspill from her toilet. There was a “glimmer of hope” when Minister, Lindiwe Sisulu, visited the Vaal in January this year, assuring Save that action will be taken and that funds are earmarked in the 2020-2021 budget.  “It seems her enthusiasm has not filtered down to her department,” says Stewart. “After Erwat’s contract was not renewed, the department stated they would undertake the repairs by appointing their own contractors. Tender documents have been languishing on someone’s desk at the department since July.” Sputnik Ratau, spokesperson for the department, says the government has committed resources towards solving the sewage problem in the Vaal.  “Government sent state institutions to assist Emfuleni local municipality (ELM) in this regard; these include SANDF and Erwat. Recently, the department finalised the scope of all that needs to be done to solve the sewage problem. There are 26 work packages that will be advertised in the coming weeks for competent contractors to take part in solving the sewage challenge in the Vaal.”  The department, says Ratau, aims to have a “busy festive season” working with the appointed contractors. “In the 2020/21 financial year, the department has committed R911-million towards solving this challenge. The total investment by the department in 2020/21 financial year is R1.2-billion in the Vaal; this includes the building of additional wastewater treatment capacity and associated pump stations.” Maphelo Apleni installs pipes to drain sewage out of his garden. Before the end of the financial year Module 6 in Sebokeng water care works will be launched, “subject to no community unrest disrupting construction”. The department, Ratau says, has to take all necessary precautions to ensure that section 217 of the constitution is followed as far as procurement is concerned.  “Thus the departmental checks and balances had to be followed to the letter to ensure compliance with procurement processes. This unfortunately caused delays but was necessary.” Within the next month the department aims to advertise for all the contractors “that can assist in this challenge”. Ratau says commitment dates, including start and completion dates, “will be sent not only to Save but all interested stakeholders once the contractors are appointed. The department cannot preempt this before the appointments are made.” He says that R7-billion is required to “solve the pollution challenge in ELM. This needs to be coupled with operations and maintenance, which is a function of ELM at local government level”. Save is once again taking the government to court to enforce legislation to ensure infrastructure is repaired within phased completion dates and that sufficient funds are made available for ongoing maintenance and operation of the system by the municipality, supervised by the high court.   Veja’s Mokoena is glad the department is taking over the Vaal clean-up. “This situation was supposed to be fixed a long time ago. So much money has been squandered at the municipal level.” Rand Water’s delay Eight months. That’s how long it took Rand Water to release public water quality records for the Vaal Barrage system to a team of aquatic specialists investigating the ecological health of the river system.  In January, Aquatic Ecosystems of Africa submitted a Promotion of Access to Information Act (Paia) application to Rand Water for access to its water quality analysis data for the Vaal Barrage and downstream since 2015.  Nothing happened, it says, until Tshepang Sebulela, the Paia compliance officer from the South African Human Rights Commission (SAHRC) intervened late last month.  New pipelines are being installed in the Vaal. In an email to Rand Water, Sebulela noted how the multiple requests for records by Aquatic Ecosystems and the Federation for a Sustainable Environment have allegedly been ignored, which in terms of Paia are deemed refusals.  “The SAHRC is greatly concerned by a large number of public institutions who provide such important services to the public who refuse to meet their basic legislative obligations,” he wrote. The records landed in the firm’s inbox on 2 October.  Aquatic Systems’ Simone Liefferink says sourcing surface water system data is becoming increasingly difficult. “It’s disturbing the data is not adequately managed, readily accessible to the public and private sectors who pay tax and other water charges for effective catchment management to be implemented.”  Rand Water did not explain the reason behind the delay.  That the information was provided in a PDF format of almost 2 000 pages “frustrates and delays” its interpretation, says Liefferink.  She and her partner, Russell Tate, began their investigation after a major fish kill in the Vaal River in mid-2018. That September they testified at the HRC’s inquiry into the contamination of the Vaal River that high levels of ammonia from the wastewater treatment works was wiping out life in the river system. A snap-shot analysis of the data provided by Rand Water shows high levels of E coli, ammonium and ammonia — key indicators of sewage pollution. Average E coli counts soared from 12 705 colony-forming units per 100ml in 2010 to more than 107 000 in 2018 and 66 923 in 2020.  “The contributing factor is clear — dysfunctional sewage treatment conveyances and treatment plants. More disturbing is the long-standing deterioration of the system that ever increases the loss of biodiversity and other essential ecological functions and human services. Yet this matter is still not treated with extreme urgency,” says Liefferink. HRC’s long-awaited report It’s taken nearly two years for the Human Rights Commission to release its report into the Emfuleni sewage crisis. “Their report has not yet been taken to parliament, nor has it been published. Why?” asks Save’s Stewart. Buang Jones, the Gauteng manager of the HRC, says the provincial report has been finalised.  “It’s with the commissioners now for final adoption and approval. Once it’s been approved, it will be shared with implicated parties and they’ll have 10 days to comment. This is a countrywide issue and the report seeks to address broader challenges when it comes to river pollution and wastewater management,” he says.  Read the original article here.

POLLUTION OF THE VAAL RIVER INTERVENTION AS PRESENTED at Rietspruit Forum - Aug 2020

The Intervention document is attached for download....

Development of the National Eutrophication Strategy and Supporting Documents

Attached documents:1. DWS Eutrophication SA & GA PSC 1 BID2. PSC 1 Meeting A...