Pondoland mine project gets first green light

The following is an update on the planned new mineralsands mine of Mineral Commodities and Transworld Energy, its progenitor. The company has cleared permtiting with the South African government despite fervent oppositon.

Mineral Commodities to have busy 12 months

Sarah Belfield

Miningnews.net

May 04, 2004

Mineral Commodities is aiming to get mining approval for its Xolobeni mineral sands project in South Africa by May 2005 after has recently gaining a 25-year mineral lease for the project. The junior will $2-3 million over the next 12 months on a scoping study, bankable feasibility study and environmental impact assessment, with the company having cash of $3.1 million at end of the March 2004 quarter.

In February 2002, the company obtained sole option to convert its Xolobeni prospecting permit to a mineral lease, on condition that a business plan, mining plan and program, and environmental management plan were submitted.

Mineral Commodities obtained the mineral lease after submitting the required documents during the March 2004 quarter, through its South African subsidiary Transworld Energy and Minerals Resources.

Additional reports were submitted in the process, namely a public consultation, a social and labour plan strategy, an environmental review, rehabilitation procedures, and a market analysis.

Under the new Mineral and Petroleum Resources Development Act in South Africa, the company has 12 months from May this year, when the Act is likely to take effect, to apply for mining rights under the new legislation.

Xolobeni is a large mineral sands resource located about 200km south of Durban on SA's east coast, with the resource contained within five blocks along a 33,000ha coastal strip. The project has been under somewhat of a cloud due to some in South Africa calling for the project to be refused development approval on environmental grounds.

Pre-feasibility work on Xolobeni has previously scoped out a potential US$202 million development including construction of a separate mineral separation plant and downstream smelter.

Mineral Commodities' shares closed unchanged at 28c.

Pondoland mine project gets first green light

Source: Earthlife Africa eThekwini (Durban) Branch

30th April 2004

THE long-standing dispute regarding the implementation of the Xolobeni Mineral Sands Project in Eastern Cape could be nearing its end. This follows the awarding of a minerals lease to Transworld Energy and Minerals Resources (SA) by government.

Alan Luscombe, CEO of the Australian parent company of Transworld Energy said yesterday that the minerals and energy department had granted the company a titanium mining lease, paving the way for an environmental impact study.

Transworld Energy is already in possession of a prospecting permit for the project.

"This is an important step for the Xolobeni project and clears the way for us to proceed with the necessary studies required to apply for mining approval by way of a mining right," Luscombe said.

"We are confident that mining approval will be granted by May next year," he said.

The mining project in Pondoland has been caught up in a wrangle between the minerals and energy department and several environmental groups.

There has also been a tussle between the department and its environment and tourism counterpart over the environmental sensitivity of the area, with the later arguing that the project would damage the ecosystem.

The minerals and energy department insists that the project will create jobs in the impoverished area.

However, environment and tourism spokeswoman Phindile Makwakwa said her ministry still maintained that eco-tourism outweighed the benefits of mining.