[miningmx.com] — FIRST Uranium is still waiting on the Department of Mineral Resources (DMR) to play its next card following the “withdrawal’ of subsidiary Mine Waste Solutions’ (MWS’s) mining right- a factor which has been weighing heavily on the already battle-weary gold and uranium producer’s share price.
To recap, the DMR notified MWS in September that it has withdrawn the company’s new order mining right. MWS replied it never had such a right as waste dump operations were not regulated under the Mineral and Petroleum Resources Development Act (MPRDA). It said that, based on its view, MWS stood under the governance of the National Water Act, the National Environmental Management Act as well as the National Nuclear Regulator.
MWS also told the DMR it would carry on with operations, thank you, and has been waiting on a response from the department ever since, according to CEO Deon van der Mescht. The move hasn’t offered the market any comfort, however, with First Uranium’s shares – moving south since 2007 – losing around another 40% following the company first announcement about this development on September 16.
This is why one could’ve thought the two parties found a solution to the impasse when the DMR on Thursday invited financial media to attend the launch of a agriculture, development project, sponsored by First Uranium.
Anyone arriving around 11:00 on Friday at Elandsfontein farm outside Randfontein would’ve found the three main protagonists – Mines Minister Susan Shabangu, newly appointed DMR Director General Thibedi Ramontja and First Uranium CEO Deon van der Mescht – sitting snugly in a row on a make-shift stage inside a marquee.
The project forms part of First Uranium’s social plan under its mining right for Ezulwini. The company committed R1.93m in April to establish the farm, aimed at assisting community co-operatives to develop the necessary skills for producing fresh produce on a commercial basis.
Shabangu – who flew in from the COP17 event in Durban to attend this – heaped praise on First Uranium for the initiative, saying the company “understands the laws of this country’.
“We appreciate your work,’ she told Van der Mescht. “This will go a long way towards contributing to this area.’
When asked by Miningmx to comment on the proverbial elephant in the room, Shabangu said MWS’s mining right was an unrelated issue to Friday’s function.
“We speak out when companies do not follow the regulations, but we also have to recognise where they do good,’ she said, adding that the regulation of mine dumps was an aspect of the act that may come in for changes.
For his part, Van der Mescht said he was happy the message would get out that First Uranium and the DMR were not involved in a standoff, even though no resolution has been found to the issue of MWS’ mining licence.
“We’re not going to bite the hand of the regulator, but at the same time we won’t back down on our rights,’ he said. “We genuinely support the letter and intent of the act, and would like this issue to be solved.’
Repeating what he told Miningmx on the issue in November, Van der Mescht said First Uranium has a strategy in place to ensure MWS complies with all the requirement of the MPRDA – regardless of whether the company’s operations fall within the ambit of the Act or not.
He didn’t want to elaborate on details, except for saying it would be communicated to shareholders soon.
