Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
A small poverty-stricken South African community 300km north of Cape Town is taking on De Beers over the diamond giant’s plans to sell its 970 square km Namaqualand properties to a much smaller outfit already operating in the area.
Hondeklipbaai residents say Trans Hex, which will assume responsibility for rehabilitation, has a poor track record in the area, lacks financial clout and the environmental management programme put together by De Beers already falls far short of what is needed to clean up almost a century of opencast mining in the biodiversity hotspot.
The Hondeklipbaai community has lodged a land claim against De Beers and also want the sale to Trans Hex stopped. South Africa’s department of Mineral Resources is expected to make a decision on the approval of an amended environmental management programme, and the transfer of mining rights to Tranx Hex, within weeks. Past proposals have included using the disused mines to store hazardous waste or converting them into prisons.
News24 reports according to mine rehabilitation specialist, Dr Peter Carrick, Trans Hex hasn’t made any real attempts at ecological restoration at its existing operations in the region.
In July De Beers concluded a deal with the state power utility Eskom to build a 150MW wind farm on a large stretch of coast north of Kleinzee, one of two towns that form part of the De Beers properties.
5 Comments
allritejack
This was a semi desert when De Beers came and it is now a semi desert, albeit with a changed landscape. Anyone who has lived in Namaqualand will know that the most desolate areas are around the coloured townships. This is due to the gross overpopulation of goats and donkeys which leave nothing living for miles. You will not see one of the famed Namaqua daisies anywhere near a township, as everything is sacrificed for the status of having umpteen surplus donkeys. This is just another begging bowl situation so prevalent in the new South Africa.
Alex
….Or is it…???
Profit Cashback
Sounds like you work for De Beers Neville!
Alex
It is a condition of the Corporate Mandate to structure itself to limit liability and any loss of profit gained. To cut and run where ever possible is an epidemic rife throughout the mining industry and transfering responsibility and liability to a weaker entity is a well calculated move…!
Profit Cashback
DeBeers don’t care about the people of South Africa. They’ve got their money made in the last 80 years and squeezed every cent out of it and are now closing their positions by selling it off to another more “INCOMPETENT” miner.
Not only do DeBeers control the flow of diamonds by not releasing too much of it as to hold their value and prices higher but their unethical practices show their lack of respect to the community, environment and the future population of South Africans.
Shame on you DeBeers. Diamonds may be forever, but DeBeers will never be!