MC Mining has rejected allegations by the DA that it is mining illegally at its Makhado Colliery in Limpopo, saying its environmental authorisation remains valid and its activities are taking place within SA’s regulatory framework.
The company’s response, issued on Monday, followed a statement released by the DA on Friday, in which the party accused MC Mining’s subsidiary, Baobab Mining and Exploration, of operating without valid authorisation in the Vhembe Biosphere Reserve, a critical biodiversity zone.
DA MP Andrew de Blocq said in his letter to mineral & petroleum resources minister Gwede Mantashe the company’s environmental authorisation had been suspended and was under appeal, rendering it invalid. He claimed evidence of land clearing dated back to June last year, with further development observed during a DA oversight visit in January and confirmed by third-party reports in May and July.
MC Mining pushed back, saying Mantashe had earlier confirmed the validity of its environmental authorisation in response to a parliamentary question. While acknowledging that legal processes remain pending in the high court in Pretoria and with the department of forestry, fisheries & the environment, the company insisted its activities remain within the licensing framework.
“The allegation that the company is conducting illegal mining activities is groundless and devoid of fact,” MC Mining said, adding that it lawfully began vegetation clearance and road expansion in June 2021, after notifying the competent authority.
The DA also raised financial concerns, arguing that MC Mining’s guarantees for rehabilitation and closure had lapsed. It cited the company’s latest financial statements, which show short-term assets covering only 8% of liabilities, warning that taxpayers could be left with the rehabilitation bill if the company collapses.
The DA said MC Mining’s past record included a R9m fine at its nearby Vele Colliery several years ago, when it was still known as Coal of Africa, for operating without authorisation.
MC Mining countered that it continues to make annual financial provision for rehabilitation in compliance with the Mineral and Petroleum Resources Development Act and the National Environmental Management Act, with guarantees in place.
The company also framed the DA’s claims as harmful to investor confidence. “SA is in dire need of foreign direct investment. Baseless allegations only serve to discourage much-needed investment for job creation and economic growth,” it said.
It said it remains focused on commissioning the Makhado project within the legislative framework and aligning with the government’s Steel and Metal Fabrication Master Plan.
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