Australia based MRC controls Tormin: Disregards Environmental Protection Regulations
Quote: "For locals it was another instance of Tormin's disregard for the environmental protection conditions required by its licence."
Xolobeni and N2 toll road disaster will follow if their application is granted to strip mine the Wild Coast's titanium deposits at Xolobeni.
Ann Crotty | 22 November, 2014 20:12
What happens at Tormin is being watched closely not just by people in the area but also by a community thousands of kilometres away on the other side of South Africa. Australian-listed Mineral Commodities (MRC), the muscle behind Tormin, has plans to mine titanium from the sand at Xolobeni, a pristine area south of Port Edward on the Wild Coast of the Eastern Cape.
The Department of Mineral Resources confirmed it had received a new application for a prospecting right at Xolobeni and said the application was under adjudication.
On the West Coast, Tormin has ambitions to expand mining for zircon, garnet, rutile and ilmenite - used in ceramics, paint, paper and plastic. But, if the allegations are correct, it could be that, without more effective monitoring, economic benefits will be overwhelmed by damage to the environment, including the roads.
In Vredendal, locals say they are not against mining but their concerns include damage being done to the roads by the trucks that ferry the zircon from Tormin's plant to Cape Town and garnet and ilmenite to Saldanha. "We have a huge problem with the trucks. The roads are not designed for this, but when we mention that, [Gary] Thompson [the Australian GM] says it's not his responsibility, it's the responsibility of the trucking company," said a resident after a public meeting to discuss a proposal to double the size of the plant.
Tormin is required by the National Nuclear Regulator to exercise considerable care when handling and transporting the low-level radioactive material produced from mining the sands. There are indications that these regulations are being contravened. The regulator and the Department of Environmental Affairs did not respond to requests for comment.
On the other side of the country, Nonhle Mbuthuma of the Amadiba Crisis Committee said disturbing reports from the West Coast confirm their determination to prevent MRC from mining the Xolobeni sands.
"Their plans would destroy a stretch of the South African coast that is uniquely beautiful. It could be harnessed to support a valuable ecotourism industry that would provide livelihoods for generations to come."
She explained that the mining activity would destroy surrounding farms and homesteads, and transporting the material to a harbour would cause huge damage.
Xolobeni is regarded as a valuable source of titanium, with production expected to reach 65000 tons a month if MRC is given the go-ahead.
"We fear there could be as many as 60 trucks a day travelling from the mine through an area that has no tarred roads and has lots of children going to and from school, and livestock roaming free. Mining will destroy this area and the lives of everyone in it," said Mbuthuma.
She suspects that the South African National Roads Agency Limited's determination to build the N2 highway so that it passes just a few kilometres from the Xolobeni site reflects a desire to accommodate the miners. At Vredendal, Tormin is providing employment to about 140 people. However, most management jobs are held by Australians and, in a move that has caused consternation among locals, a large number of staff have been brought in from the Eastern Cape.
The prominence of Australians in the top ranks reflects MRC's control of Tormin. That dominance has become more evident since South African Andrew Lashbrooke resigned as CEO of MRC's local operator, MSR, in September. Several other South African managers left after Lashbrooke. Most were replaced by Australians.
Lashbrooke's involvement was tied to the belief that his company, Blastrite, had rights to the garnet that was a by-product of zircon production and is used in sand-blasting. In exchange for these rights, Lashbrooke managed Tormin and undertook to assist MRC in securing the Xolobeni mining rights. To this end, Lashbrooke introduced MRC's executive chairman, Mark Caruso, to the Eastern Cape-based black economic empowerment company Blue Bantry/Xolco.
In July, MRC told its shareholders that it had entered into a three-year garnet offtake agreement with GMA Garnet Group of Australia. People with knowledge of Tormin say Blastrite did not have sufficient capacity to take up all the garnet produced by Tormin. This resulted in stockpiling of the low-grade radioactive material and in some instances in it being dumped back into the sea. For locals it was another instance of Tormin's disregard for the environmental protection conditions required by its licence.