[miningmx.com] — STATE-owned diamond miner Alexkor is once again on the lookout for new mining opportunities, a senior government official told parliament on Wednesday.
Deputy Minister for Public Enterprises Dikobe Ben Martins said there has been a redirection of Alexkor’s strategy, after the firm recorded a financial profit in 2010 for the first time in five years.
“Alexkor has. been mandated to explore opportunities to procure new mining ventures in order to secure new revenue streams and ensure its future growth,’ said Martins.
“This entails exploring opportunities for downstream beneficiation to contribute to the creation of new jobs; the development of requisite skills; investment in research and development; economic growth, sustainable development and cost effective support for the broader policies of government.
“This new strategy will ensure the company’s long-term viability, whilst contributing to the socioeconomic upliftment and development of the Richtersveld region.’
Alexkor failed to return a profit between 2005 and 2009, despite being allocated R130m in state financial assistance in 2008/09 and R168m in the three years preceding that.
According to the group’s annual report for 2010, it recorded an operational loss of R6m for the year to end-March (2010), a reduction of R20.6m on the loss incurred in 2009. However, due to non-cash items, including environmental liability, depreciation and the reduction of a post-retirement medical aid liability of R45.1m, the operating loss became a net after-tax profit of R36.1m.
CEO Khetiwe McClain-Maseko said the company had plans to explore deep sea, middle sea, shallow water, beach and other land mining opportunities.
The Richtersveld community and Alexkor signed an accord in 2007 which gave the community a 49% stake in the company, following a drawn-out legal battle in a land claims case.
A court ruling has also obliged Alexkor to transfer land and mineral rights to the Richtersveld community, establish Alexander Bay as a formal township and establish a pooling and sharing joint venture for future mining activities.
“To date, significant progress has been made in the implementation of the deed of settlement,’ said Martins. “All Alexkor, state and Northern Cape Provincial land – including land mining rights – has been transferred, except the township erven.’
