The Department of Mineral Resources and Energy (DMRE) has noted with concern recent news reports on the enforcement of laws and regulations on areas mined by Central Rand Gold (Pty) Ltd in the Riverlea and wishes to set the record straight.
It is publicly available information that Central Rand Gold (Pty) Ltd held an old order mining right which was converted in line with the Mineral and Petroleum Resources Development Act (MPRDA, 2002).
In terms of Section 41 of the MRPDA, an applicant for a prospecting right, mining right or mining permit must make the prescribed financial provision for the rehabilitation or management of negative environmental impacts. Central Rand Gold (Pty) Ltd made the required financial provisions to the value of R44 774 902.01 by means of bank guarantees from Guard Risk Insurance. The validity of the bank guarantees was verified with the Guard Risk Insurance on the 20 January 2022 and they are still valid.
The company has since undergone liquidation process, and its Duty of Care (to clean-up and rehabilitate all areas affected by mining activities) obligations in terms of Section 28 of the National Environmental Management Act were imposed to the Liquidators as appointed by the High Court.
The Liquidators gave Amatshe Mining (Pty) Ltd the right to use the land in question, as a result, the Duty of Care obligations were then imposed on Amatshe Mining (Pty) Ltd through a Section 28 directive. The Duty of Care imposed obligations to Amatshe Mining (Pty) Ltd to rehabilitate the land previously mined by Central Rand Gold (Pty) Ltd, and it was issued for a period of 12-months spanning from the 03/12/2020 to 04/12/2021.
Amatshe Mining (Pty) Ltd approached the landowner, iProp, in March 2021 for the purpose of gaining access to the land area in conducting the rehabilitation works as per the S.28 directive issued. However, Amatshe Mining (Pty) Ltd was refused access to the land and to conduct the required rehabilitation (as per consent provided by Liquidators to Amatshe Mining (Pty) Ltd). This created a deadlock preventing Amatshe Mining (Pty) Ltd from conducting the required clean-up and rehabilitation as proposed.
Nonetheless, rehabilitation work was done as part of the DMRE’s Derelict and Ownerless mine rehabilitation programme between 2019 and 2021, and 34 shafts were sealed. Furthermore, the DMRE has undertaken to rehabilitate at least 24 shafts in Riverlea and Zamampilo in the current financial year, at an estimated cost of R75 000.00 per shaft. The funds to rehabilitate the 24 shafts will be drawn from financial provisions made by Central Rand Gold (Pty) Ltd.
The DMRE remains committed to strict enforcement and compliance with the laws and regulations in the mining industry.
For enquiries: mediadesk@dmre.gov.za
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Issued by the Department of Mineral Resources and Energy