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CoAL suffers another major setback

 

Mining company Coal of Africa Limited (CoAL) is urgently scurrying around to get their water licence back.

Last week, the Department of Water and Sanitation (DoW) suspended the integrated water-use licence for CoAL’s imminent Makhado Mine. The mine will be situated approximately 65km southwest of Musina and, if it becomes a reality, it will surround the indigenous Mudimele community.

According to CoAL, the licence’s suspension follows an appeal made to the department, which was submitted by the Vhembe Mineral Resources Forum (VMRF) and other parties. VMRF’s appeal automatically suspended the water use licence in terms of the South African National Water Act (Act 36 of 1998).  

After CoAL received the licence in January this year, they continued with plans to begin building the mine in the second half of this year. The licence was for 20 years’ use, and the suspension could prove a major setback for the company.

CoAL said last week that they had expected this move from the VMRF. The firm added that they were in the process of preparing an urgent representation to the Minister of Water and Sanitation, Nomvula Mokonyane, to request that the licence remain in full force and effect, pending the final conclusion of the appeal by the Water Tribunal. CoAL CEO David Brown explained: “We are actively engaging with the department to resolve this appropriately.”

The VMRF, which consists of farmers and community members, said their hand was forced, despite the fact that they had warned both CoAL and the DoW of the serious consequences of the withdrawal of 4.2 million litres of water per day from the Nzhelele catchment area to sustain mining activities at the Makhado Mine.

In the meantime, lifting the suspension is not the only challenge CoAL faces to see the Makhado project becoming a reality. In December 2014, the High Court granted an interdict in favour of the VMRF against the establishment of the mine. Furthermore, the VMRF is awaiting the outcome of their review application in the High Court against the rejection of their appeal against the environmental approval for the mine. No decision is expected before next year. This will mean that the interdict remains in force and that CoAL’s hands will be tied for at least the duration of this year.

 

Date:23 April 2016

By: Isabel Venter

Isabel joined the Zoutpansberger and Limpopo Mirror in 2009 as a reporter. She holds a BA Degree in Communication Sciences from the University of South Africa. Her beat is mainly crime and court reporting.

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