Friday, 30 December 2011
Mining boom on the cards
Melmoth and environs stand to be transformed if an iron-ore mine being planned about 10km from the town, comes to fruition. The Johannesburg-based Sungu Sungu Group has obtained the prospecting rights to the portions of land Ekuthuleni 6124 and portion 2 of Wilhemina 6122, situated just before the local landmark, Oom Wessel Se Winkel. Company representatives, including the owner Thabang Khomo, on Tuesday and Wednesday this week visited the area to consult with landowners and affected parties.
Khomo said about 60 people attended the meeting, including the local iNduna, the Mayor of Melmoth Maureen Ndlangamandla, and councillors. Khomo said if the prospecting phase proved successful and a mine was established, it would employ up to 5 000 people. It will take about three years for the fully fledged open-cast mine to be operational, after the prospecting and exploration phases had been completed. Sungu Sungu Group is in partnership with Jindal Africa, a subsidiary of the Indian mining and energy giant Jindal Steel and Power. Khomo said they had raised $1.5-billion (R12-billion) in financing for the operation.
Legal process
The prospecting phase aims to determine the quantity and quality of the iron-ore resource.
Based on drilling done over several decades, it is claimed the Banded Iron Formation extends for 20km, with an estimated one billion tons of iron-ore that can be mined, he said.
Exploratory drilling has apparently been taking place in the area since the 1980s.
Khomo said Ekuthuleni was community/tribally-owned land, falling under the jurisdiction of the Entembeni Tribal Authority.
The Wilhemina portion is privately owned.
In terms of the Minerals and Petroleum Resources Act, mining groups have to consult with interested and affected parties.
The group has placed a legal notice inviting parties to register their interest.
Khomo said a consultation phase would be held later in Melmoth, the town most likely to be affected by an influx of people.
Anyone can register as an interested and affected party before 6 January by contacting the company on 011 0215397.
Khomo said if established, it would be the first iron-ore mine in KZN.
Sungu Sungu Group believes the area is ideally placed for a mining operation because of its proximity to the Richards Bay bulk handling port (70km away), and because it is linked via a single gauge rail line.
A large dam is located on the site, and an established road network runs close by.