Sharda Naidoo
28 May 2003
Johannesburg — A MULTIMILLION-dollar mining project in Eastern Cape has been put on ice as two government departments slug it out over a conflict of interests.
The departments responsible for mining and environmental affairs have been forced to appoint a task team to deal with conflicting issues around the Xolobeni Mineral Sands project.
The controversy arose when the minerals and energy department granted a prospecting permit to Transworld Energy and Mineral Resources SA in March last year to mine mineral deposits in the unspoilt Wild Coast region. The Perth-based Minerals Commodity then acquired a 75% stake in the SA firm, with the intention of mining ilmenite for titanium production over a 17-year period.
This led to an uproar as lobby groups argued that the mining development could ruin the protected conservation areas that are unique to that region, and kill a thriving ecotourism industry.
The task team's final report is expected to be completed by July. The matter will then be referred to the cabinet for a final decision.
In the meantime, government has halted any activity at the development site, where some exploration is already under way.
Officials from the departments were tight-lipped yesterday about details of the deal or the issues being thrashed out, saying they were bound by confidentiality agreements. However, a minerals and energy official said government "wanted to prevent another St Lucia situation".
Skumsa Mancotywa, from environmental affairs, said her department had received the task team's initial report, but "we are not happy with it". This implies that the report is leaning in favour of the mining project.
Environmentally sensitive issues pertain to the floristic composition of the grasslands and the need to pump water from estuaries without adversely affecting water regimes and ecosystems.
The Australian firm, which could not be reached for comment yesterday, has argued that with appropriate rehabilitation, the situation can be managed.
A threat to ecotourism: Page 2
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