Conservation SA seeks say on mine sale

CONSERVATION SA yesterday appealed to Mineral Resources Minister Susan Shabangu for a chance to comment on diamond producer De Beers’ planned sale of its Namaqualand Mines to JSE-listed Trans Hex.

If Ms Shabangu allowed Conservation SA to comment at this stage it would set a precedent as the Mineral and Petroleum Resources Development Act did not allow for it, said Sarah Frazee, its CEO and MD.

Conservation SA says comment now is important because the land owned by Namaqualand Mines is one of the world’s 34 biodiversity hotspots , and De Beers is liable for major transformation of the landscape.

De Beers, the world’s largest producer of rough diamonds, last week acknowledged that an unspecified amount of liabilities was included in the R225m sale , which would reduce the actual amount paid to it.

Ms Shabangu’s spokesman, Musa Zondi, said she would consider the letter once it reached her desk.

Ms Frazee said the region’s biodiversity, and the fact that Namaqualand Mines was one of the largest mining footprints in SA, meant the sale should be intricately scrutinised.

“Conservation SA and local residents question how De Beers assessed Trans Hex as having the necessary technical competence or proven track record for restoration of the fragile Namaqualand environment.”

De Beers Consolidated Mines spokesman Tom Tweedy said it had evaluated Trans Hex’s ability to take on its liabilities, including environmental ones.

Conservation SA and its parent organisation, Conservation International, had done “good” work on contract for De Beers Consolidated Mines until July or August last year and had wanted a role engaging with those bidding for the mine, he said.

Ms Frazee said Conservation SA was not saying Trans Hex was not competent, but would like to know why De Beers believed it was competent on this score. “It is a very important area and we want to see it … restored. They (De Beers) have done really good restoration work…. Now they are selling on and that makes us nervous.”

Mr Tweedy said the sale documents were in the public domain. With Allan Seccombe

blaines@bdfm.co.za