JOHANNESBURG (miningweekly.com) – ASX-listed Mineral Commodities (MRC) plans to sell its 56% stake in Transworld Energy and Resources to its black economic-empowerment partner Keysha Investments amid alleged continued violence and threats in the local Xolobeni community.
MRC on Monday said it is shedding its stake as it believes the Xolobeni mineral sands project, owned by Transworld, will likely be better off in the hands of South Africans.
MRC and Keysha have entered a memorandum of understanding for the sale of the stake on terms to be agreed between the parties for an undisclosed amount, despite the significant financial, technical and social resources injected toward the development of the Xolobeni project since 2003.
“The company has engaged in many years of ongoing and meaningful consultations with the local community at Xolobeni and has always prioritised the wellbeing of the Amadiba community,” MRC said in a statement to shareholders.
However, attempts to facilitate peaceful and safe site access by independent environmental consultants to adequately assess the possible environmental impacts of the Xolobeni project continue to cause “undue tensions and conflict”.
“Xolobeni project’s development should not be influenced directly or indirectly by the stakeholder focus being placed on an international mining company, as opposed to legitimate debate surrounding the economic benefits (or otherwise) and the environmental issues concerning the development of the Xolobeni project," MRC concluded.