[miningmx.com] — The department of mineral resources is busy with an extensive audit of a number of coal companies that had their mining rights applications expedited under the pretext of supplying Eskom with coal, but which in many cases have been exporting it instead.
There is even the possibility of these companies losing their rights should it be found that the rights were obtained under false pretences.
This investigation is in no way related to the national moratorium on prospecting rights and the accompanying audit of such rights, said Bheki Khumalo, spokesperson for the department.
The coal audits focus on mining rights and have been in process for a couple of years. The prospecting-rights audit process was announced late last year. It is investigating the basis upon which the rights applications were expedited, said Khumalo.
In his view there is a possibility that the department could invoke a provision in the Mineral and Petroleum Resources Development Act to cancel some of these companies’ rights.
Eskom’s coal procurement has been heading for crisis for years, and the situation is aggravated by increasing foreign demand for the low-grade coal for which it was previously the only buyer.
Khumalo declined to comment on which companies were being audited, but one of these is Vunene Mining, which owns the rights to the Usutu coal mine beside the Camden power station outside Ermelo.
Last week it came to light that, after a brief three-month contract to end-January, Vunene had stopped providing the power station with coal.
– Sake24
