Umcebo in hot water over breaches of mining licence

12 September 2010 - 02:00 By BOBBY JORDAN
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The government is investigating an empowerment mining company for alleged water licence irregularities amid calls for a crackdown against ''cheats".

Politically connected Umcebo Mining, whose directors include former Department of Trade and Industry director-general Alistair Ruiters, has raised the ire of minister of water and environmental affairs (DWA) Buyelwa Sonjica.

Her spokesman Sputnik Ratau said: "Yes, the minister is aware that Umcebo is operating some of its mines without valid water-use authorisations and a criminal case was opened against Umcebo for one of its mines ... But, unfortunately, the prosecutor decided not to prosecute and the case was withdrawn. The minister is not happy with this turn of events and officials of DWA are in contact with the National Prosecuting Authority to decide on the way forward."

In terms of the National Water Act, companies are supposed to wait for a water licence to be issued before starting operations. However, a major bottleneck in the application process has prompted many companies to ignore the regulations rather than grind to a halt. The situation recently provoked angry reaction within parliament's portfolio committee on water affairs, which grilled the department on its failure to enforce the law.

Umcebo has declined to comment on the furore. Ruiters, a non-executive director, said he was no longer involved in operational affairs and had been out of government for more than five-and-a-half years.

"My contact with government and knowledge of its procedures is distant," Ruiters said via e-mail last month. While Umcebo is one of more than 120 companies to overstep the mark in terms of water use licences, the company appears to have upset some environmental stakeholders due to its failure to consult. Questions around its Brakfontein (Gauteng) mine - allegedly abandoned last year with a licence still pending - last month prompted a written response from Sonjica, who said the matter was under investigation by her department and mineral resources.

Now some of Umcebo's directors are involved in a new bid for a 480ha coal mine in one of the country's most water-sensitive catchment areas. The venture, which is 80% owned by Mbokodo Mining, features three of Umcebo's directors. Mbokodo's ownership structure is unclear.

Umcebo has confirmed an interest in the project "through a joint-venture vehicle, Mbokodo Mining".

The proposed new mining venture is being opposed by an environmental group, the Escarpment Environment Protection Group. The group has in the past highlighted licence irregularities involving several other high-profile mining companies, including Vuna Mining, whose chairman is Andrew Hendricks, husband of former minister of water affairs Lindiwe Hendricks.

Vuna Mining denied it was operating illegally when the Sunday Times reported on the matter last year.

The water licence issue has drawn sharp criticism from several quarters, including Kleinbooi Mahlangu, a community leader living close to the proposed new mine.

Mahlangu said unemployed residents were desperate for jobs but could not work at the expense of the environment. "People from around here, if they see the results of the water and the blasting, when the mine is finished they feel it is better we live as we were from the first because the environment was not affected," he said. Commenting this week, water affairs portfolio committee member Gareth Morgan said: "It is unacceptable that mines operate without water licences. It is a transgression of the Water Act to withdraw and discharge water without a licence.

"The department prefers to persuade mines to become compliant but they certainly do have the legal power to forbid a mine from using water which would effectively close a mine down until such time as a water licence is granted. The department chooses not to enforce this."

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