JOHANNESBURG (miningweekly.com) − The Department of Environmental Affairs (DEA), Coal of Africa Limited (CoAL) and South African National Parks on Thursday signed an agreement, committing to the preservation of the Mapungubwe World Heritage site.

DEA deputy director-general Fundisile Mketeni said that the agreement, relating to CoAL’s controversial Vele mine project in Limpopo, was a milestone in striking a balance between government’s objective of economic development and environmental conservation.

The purpose of the agreement is to ensure the integrity of the historical Mapungubwe site, through biodiversity offsets programmes, which included components of natural and cultural heritage conservation, tourism development and water resource management.

Last month, CoAL stopped all activities requiring the use of water at the Vele project, after a coalition of nongovernmental organisations (NGOs) appealed the integrated water use licence.
The appeal automatically suspended the water use licence, but other activities continued following the granting of environmental approval for the Vele mine in July. The mine was previously put on hold for almost a year when it was discovered that the company did not comply with the standards of the National Environmental Management Act. CoAL paid about $1.3-million to the DEA for these missteps.

CoAL CEO John Wallington said that the signing of the agreement was not premature as the company expected to succeed in sustainable mining in Limpopo. “We want to set the standard in responsible mining as future mining in the country is likely to increasingly venture into more sensitive areas. By signing this agreement, the first of its kind, we have effectively raised the bar.”

Mketeni agreed, assuring journalists that the historical Mapungubwe area was under no threat of getting delisted as a World Heritage site and said that the agreement would provide a framework for future mining in the area.

He noted that there were a large number of other applicants that wanted to mine in the area. “We will have to relook all of these applications and go back to the drawing board. A planning meeting will be held to consider the applications, as well as the integrity of the Mapungubwe site.”

Shares in CoAL jumped as much as 7% on the JSE on Thursday to R8.22 a share.

Vele would produce some five-million tons a year of soft coking coal over a 25-year life-of-mine.
 

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