Uranium Resources' NRC License Upheld as US Supreme Court Denies Petition

Uiron sand mining machineranium Resources (URI) announced that the United States Supreme Court has denied the opponents' petition to review the March 2010, 10th Circuit Court of Appeals' ruling that upheld the Company's U.S. Nuclear Regulatory Commission ("NRC") license to conduct in-situ recovery (ISR) uranium mining at the Churchrock/Crownpoint project.

Don Ewigleben, President and CEO commented, "Today's announcement was significant in that it clears the last remaining legal challenge to our NRC license. We have long maintained our belief that our license was valid and have continued to move forward towards the final development of the Churchrock/Crownpoint project. Our feasibility study is ongoing and in October 2010, we filed the necessary documents with the NRC to reactivate our license, which is currently in timely renewal status. Once active, the license may be utilized according to its present terms and conditions while URI completes its license renewal. We will also continue to educate the community on the project, our focus on safety and the environment as well as the economic opportunity it creates for the area."

URI's New Mexico feasibility studies are expected to be completed by the end of 2011. Assuming that the NRC license renewal moves forward in a timely manner, that appropriate financing is available and that there is a sustained recovery in the price of uranium, the Company should be in a position to begin construction of the facilities in 2012 and producing in 2013.

The NRC license allows for the production of up to an initial 1 million pounds per year from the Churchrock/Crownpoint project until a successful commercial demonstration of restoration is made, after which the quantity of production can be increased to 3 million pounds per year.

Sask. First Nations explore PotashCorp bid: report

A number of Saskatchewan First Nations leaders are working on a multi-party bid for PotashCorp, according to a reporgold content in mine tailingst. Postmedia News said Thursday the First Nations are working with pension funds, Chinese investors and merchant banks to prepare a bid for the Potash Corporation of Saskatchewan, which is the subject of a hostile $38.6-billion US takeover attempt by the Anglo-Australian mining giant, BHP Billiton.

According to a spokesman for the Indigenous Potash Group, the parties have held a series of meetings in the past week with Saskatchewan officials, PotashCorp executives and potential investors. Saskatchewan's First Nations are opposed to BHP's takeover bid and, like the provincial government, have asked the federal government to block the takeover. In Regina, the government of Premier Brad Wall will introduce an emergency motion Thursday that formally calls on Ottawa to reject the BHP deal. The Opposition NDP is expected to support it. Wall has said unanimous support for the resolution should send a powerful message to Ottawa that there's a broad consensus of opposition...

Ventana Announces Positive Scoping Study Results for La Bodega Project, Colombia

Ventana Gold Corp. is pleased to announce an initial independent NI 43-101 compliant mineral resource estimate and the scoping study results for its 100% owned La Bodega gold project in the California gold distrig m t vibration mountings south africact of northern Colombia.

The scoping study and initial resource calculation work represent the aggregate technical analysis conducted to-date on a portion of the La Bodega and La Mascota mineralized zones that exist within Ventana’s La Bodega project. All figures are in US Dollars except as otherwise noted.

Highlights of the report include:

• Average annual production for the first six full years of 347,000 gold equivalent (AuEq)* ounces, which is comprised of 301,000 ounces of gold, 1.4 million ounces of silver and 6.9 million pounds of copper


• Average cash costs of $322 per ounce of gold for the first six full years, net of silver and copper byproduct credits


• Pre-tax internal rate of return (IRR)* of 34%


• Estimated start-up capital cost of $297 million


• Pre-tax net present value (NPV)* (5%) of $807 million


• Inferred mineral resource of 3.5 million ounces of gold, 19.2 million ounces of silver and 84.6 million pounds of copper


• Mine life of 14 years at a planned production rate of up to 7,500 tonnes per day
  
  
  
  • Additional opportunities:Resource expansion from ongoing drilling with surface exploration drills focusing on La Baja, Las Mercedes, Aserradero, and the gap area between the La Bodega and La Mascota zones
  
  
  • Resource expansion from underground drilling to explore deep extensions of the ore body past the current depth of the mineral resource
  
  
  • Improved mineral recovery from metallurgical optimization work conducted at a site-based pilot processing plant
  
  
  • Increased production from further exploration and development of the known areas of mineralization
  
  
  
  

* based on $1,000 per ounce gold price, $17 per ounce silver price and $3.00 per pound copper price.

“The scoping study results and resource estimate for La Bodega demonstrate the robust economics and value this project has to offer,” said Stephen Orr, President and Chief Executive Officer of Ventana Gold.

“These results confirm our belief that the La Bodega project is one of the most exciting emerging gold deposits in South America. Concurrent with on-going exploration efforts to upgrade and expand the resource, we will now focus on completion of the feasibility to bring Ventana closer to becoming Colombia’s leading precious metals producer.”

OTOC sells out of loss maker

Mine camp builder OTOC antimony concentratehas struck a $1.2 million deal to sell its loss-making consulting business Emerson Stewart to engineering firm PDC Consultants.

The sale will close a chapter for the listed company previously known as the Emerson Stewart Group before OTOC conducted a reverse takeover last year.

It comes at least six months after chief executive Adam Lamond began seeking a buyer for the engineering consultancy.

"Unfortunately, it did drag on a little bit longer than we wanted which gets people a bit nervous but the end result is a good one for all parties concerned," Mr Lamond said.

PDC has agreed to buy the consulting division for $300,000 plus the adjusted value of its assets at the September completion date - expected to be about $880,000. OTOC in February said the division had a book value of $1.4 million.

PDC would also take on liabilities including the transfer of executive contracts and a sub-lease of Emerson Stewart's premises at the Old Swan Brewery. Both sides said Emerson Stewart's workforce of about 40 would be retained.

"We've now got the opportunity to consolidate the business with OTOC and (surveying consultants) Whelans - that's the strategy that we wanted to put in play and direction we wanted to head," Mr Lamond said.

PDC is a 40-year-old privately owned business with about 400 staff and offices in Perth, Brisbane and Manila.

Managing director Martyn Weir said the perception of Emerson Stewart as a loss-making business was incorrect.

"It's actually not a direct result of the operations of the engineering service that's caused the loss, it's probably been the wrap-up into a corporate public environment," Mr Weir said.

"It's got very good gross profits and for us it fitted our strategy of delivering the full engineering services to our clients."

Arcelormittal to invest CAD 2.1 billion in mining complex expansion

ArcelorMittal, aused screeners for sale in the uknnounced the expansion of its Mont-Wright mining complex and additional construction at Port-Cartier. The total investment for the project will be CAD 2.1 billion, approx. USD 2.15 million. The investment will allow ArcelorMittal Mines Canada to increase its annual production of iron ore concentrate from 14 million tonnes to 24 million tonnes by 2013.

The company is also evaluating increasing its production of iron ore pellets from 9.2 million tonnes to 18.5 million tonnes. The scheme represents a total investment of CAD 2.1 billion dollars that will create 8000 jobs during construction and more than 900 permanent jobs once completed. Commenting, Peter Kukielski, Member of the Group Management Board and Head of Mining for ArcelorMittal, said “ArcelorMittal Mines Canada is a flagship mining asset for the Group, which offers considerable opportunity for expansion. We have already announced our intention to grow our iron ore production to 100 million tonnes by 2015 and this expansion forms an important part of that...

Woodside Rises After Speculation of Royal Dutch Shell Swap

Woodside Petroleum Ltd. (WPL) rose the most in 19 months mining rock grinding machine supplier in chinain Sydney on speculation Australia’s second- biggest oil and gas producer may arrange an assets-for-shares swap with its largest stockholder, Royal Dutch Shell Plc. (RDSA)

Woodside increased as much as 5.6 percent to A$48.11, the most since Aug. 20, 2009. The shares traded at A$46.77 at 1:42 p.m. local time, paring the gain to 2.7 percent, compared with an advance of 1.2 percent for the benchmark S&P/ASX 200 Index. Woodside could exchange stakes in liquefied natural gas projects for Shell’s remaining shares in the company, worth more than A$8 billion ($8 billion), analysts led by Sydney-based David Heard at Bank of America Merrill Lynch wrote March 18. Under such a deal, Woodside may swap a 30 percent stake in the Pluto LNG project, an 18.5 percent stake in the Browse venture and 20.7 percent of the Sunrise development, the report said...

Diamond watchdog divided over Zimbabwe diamonds

Zimbabwe has been given the green light to sell diamonds from its Marange diamond fields by the industry's leading cgold mines in burkina fasoertification system, but the decision did not have the backing of all members. Participants of the Kimberley Process, which aims to stop "conflict diamonds" entering the market, met this week in Democratic Republic of Congo to discuss the Marange diamond fields but remained divided over a final statement.

Rights groups say abuses have taken place against illegal miners, smuggling is rife and some mines in Marange remain in the hands of Zimbabwe's military, charges denied by Harare. An inspection team from Congo, current chair of the Kimberley Process, found that Zimbabwe met the minimum necessary standards and a statement on Thursday said Zimbabwe could start selling diamonds from there again, albeit with some monitoring. Zimbabwean Minister of Mines Obert Mpofu said he had been seeking unsupervised exports. "(But) we have no choice but to accept. We want to be treated like any other country, I'm going to sell our diamonds now," he told Reuters...

Aurora mine assets stripped

The crisis unfolding at the Aurora Gold East Rand mine has deepened as millions of rands worth of equipment at the mine have been looted.

During a visit by Business Day on Tuesday, the mine’s 6 Shaft was fplanos de como se fabrica un molino para llantas viejasound dilapidated as almost all of the surrounding mining infrastructure had been looted. Everything of value, from metal components of buildings to mining machinery had been stripped using blowtorches and allegedly sold for scrap. The shafts fully functional winding machine, used to raise and lower mining cages and said to be worth millions of rands, has also been taken apart and removed. The mining operation near Springs has been in the spotlight since late 2009, after Pamodzi Gold , the mine’s previous owner, was formally put into liquidation. Aurora Empowerment Systems was granted purchasing rights to the mine following a bidding process by liquidators. Enver Matala, the liquidator involved in the project gave permission to Aurora to run mining operations until they garnered funds to buy it out completely. Matala said that as of yet no mandate has been granted to sell any property or remove any assets from the mine. “We’ve asked for a report from Aurora - you’ll need to take it up with them,” he told Business Day. Aurora Commercial Director Thulani Ngubana told Business Day that the company was unaware of the removal of any property from the site.

Katali lays into foreign miners

Namibia has mini crushers for sale in ukbecome an "Eldorado of speculators and other quick-fix, would-be mineral explorers and mining developers", Mines and Energy Minister Isak Katali said last night, adding that legislation will be changed "as soon as possible" to empower state-owned Epangelo Mining Company to share in the country's strategic mineral riches.

Although mining is one of the major contributors to the economy, its "contribution to government revenue is not commensurate with its share to the gross domestic product", Katali said. Mostly, the country has to be content with royalties, he said. "That means that Namibia benefits from its natural endowment mainly through rent-seeking. This situation is untenable," the Minister said. Katali called a press conference mainly to address the concerns of the Chamber of Mines of Namibia following the announcement in his budget speech recently that Cabinet has endorsed that uranium, gold, copper, coal, diamonds and rare earth metals be declared strategic minerals and that Epangelo has the exclusive exploration and mining rights of these...

Carbon tax could cut coal mining profits by 4% - Citi

Coal mining profits could fall by up to 4 per cent under a carbon price of $20 a tonne, a bauxite roll crusher unit user in indiaCiti analysis of Julia Gillard's proposed tax shows. In a wide-ranging look at the potential hit to listed coal miners, analysts at Citi, a global investment bank, found "pure play" coal miners would be the most exposed to the proposed carbon tax, slated to start in July 2012 - the pure plays include Coal and Allied, Whitehaven Coal, Macarthur Coal and New Hope Corporation.

Assuming a carbon price of $20 a tonne, Citi's estimated full-year 2012 net profit after tax for the pure-play coal miners would fall by up to 4 per cent, and up to 10 per cent under a carbon price of $50 a tonne. But rather than the tax being the "death" of the coal industry, as suggested by opposition leader Tony Abbott, a tax at $50 a tonne would "barely" affect the majors, like BHP Billiton, Rio Tinto and Wesfarmers, with NPAT expected to fall by 1 per cent, the analysis found...

NPA rebels threaten to attack mining firms in Zamboanga

Communist rebels have threatened to attack mining firms operating in the Zamboanga Peninsula in the southern Philippines.

Jorge Madlos, a spokesman for the New People’s Army, also warned soldiers anproyectos de como elaborar un banda transportadorad policemen from protecting mining firms he accused of plundering natural resources.

The warning came after rebels freed a policeman Faizahl Juhaili who was held hostage during a raid at a police headquarters in Zamboanga del Sur’s Tigbao town last month.

“During combat situations, in order to avert the unnecessary loss of lives, we ask the combatants from the opposite side of the armed conflict to desist from any attempt to resist when your opportunity to fight back is nil in order, especially so that you are only fighting as mercenary pawns defending the interest of plundering mining companies like the Toronto Ventures and other vested interests of the ruling class that pay you with people’s taxes,” Madlos said.

TVI Resource Development has repeatedly denied accusations by rebels and said it follows a strict international safety measures to protect the environment.

It is among mining companies operating in Zamboanga del Sur and Zamboanga del Norte and had been attacked in the past by Muslim and communist rebels who were extorting money from TVI.

In December last year, NPA rebels in Diplahan town in Zamboanga Sibugay province intercepted a group of army soldiers who were using a borrowed truck from TVI and disarmed them. The rebels also burned the truck before releasing the soldiers.

Muslim rebels had previously attacked TVI workers in Zamboanga del Norte province and killed 17 people.

Just this year, the 1st Infantry Division in Zamboanga del Sur pulled out all its militiamen guarding TVIRD properties in Bayog town after its memorandum of agreement with the mining firm expired.

The 1st Infantry Division said it would have to review the agreement. TVIRD pays for the salaries of the government militias who are members of the Special Civilian Armed Auxiliary.

The Western Mindanao Command said NPA rebels are harassing mining firms to force them to pay extortion money. It said the military is also reviewing all agreements in the use of SCAA to guard mining firms from rebel attacks.

“SCAA contracts between companies and the Armed Forces of the Philippines are renewed yearly. The renewal is facilitated by the concerned company. In the absence of contract renewal, a SCAA company is temporarily pulled out, but units are ensured that the security of establishments is augmented by nearby detachments,” Lt. Col. Randolph Cabangbang, a spokesman for the Western Mindanao Command, told the Mindanao Examiner.

Itochu sale lifts Aston Resources to profit

Aston Resources, backed by Nathan Tinkler, has filed a maiden net profit after crush sand plants in hyderabadtax of $242.9 million, largely because of its sale during the year of 15 per cent of its giant Maules Creek project to Japan's Itochu Corporation for $345m.

Mr Tinkler is the major shareholder in the company, whose sole interest is to develop a coal mine at Moules Creek in the Gunnedah Basin, with exports due to start in 2013 through the port of Newcastle. The company has ambitious plans for the Moules Creek mine, including running its own trains from near Gunnedah to Newcastle, where Mr Tinkler is planning to build another massive coal loader with capacity to handle 100 million tonnes annually. The proposal is controversial in Newcastle, as Mr Tinkler is planning to use the old BHP site on the Hunter River, whereas the state government is trying to concentrate new port development across the...

Int Ferro Metals output improving after Q4 dip

South African ferrochrome producer International Ferro Metals posted a 6 percent fall in output during its fiscal fourth quarter compared to t84 allis chalmers cone crusher data sheetshe third, but said production had improved in the current quarter. London-listed IFM said in a trading statement on Tuesday it produced 51,331 tonnes of ferrochrome in the three months to end June versus 54,394 tonnes in the third quarter due to problems with ore feed and furnace repairs.

"The company benefited from higher ferrochrome prices during the quarter although the full potential wasn't realised because of lower production levels and delayed shipments resulting from the Transnet strike," Chief Executive David Kovarsky said. "Since the last quarter, however, greater operational efficiencies have been achieved that should increase production levels, lower costs and will help us to meet future challenges." Fourth quarter output jumped 178 percent from last year, when the sector made sweeping cuts to production after demand and prices tumbled during the global downturn. Ferrochrome contract prices jumped 35 percent during the June quarter on improved demand, but fell 4 percent in current quarter.

AngloGold Ashanti eliminates hedge book, gains full exposure to gold

AngloGold Ashanti has completed the elimination of its goseperation or removal of magnisium oxide from chrome oreld hedge book, providing the company and its shareholders with full exposure to the prevailing gold price.

The company will now sell the gold it produces at market prices and therefore expects to enhance cash flow and profit margins as a result of removing hedge contracts with low committed gold prices.

"We've moved decisively to eliminate the hedge book," Chief Executive Officer Mark Cutifani said. "The completion of the hedge book restructure over the last three years has created about US$4.0 billion of value for our shareholders and represents one of the major building blocks for the new AngloGold Ashanti. We remain bullish on the outlook for gold and will now benefit from full exposure to the price as we go forward."

The cost of scheduled hedge book maturities during the third quarter of 2010 was approximately US$98 million. The additional cost of closing out all future hedge contracts amounted to approximately US$2.63 billion, representing an average buy-back price of US$1,300 per ounce for this final tranche of the hedge restructure. The cost will be reflected in adjusted headline earnings for the last two quarters of 2010.

This final phase of hedge restructuring has been funded with proceeds from the issue of new equity and the mandatory convertible bonds completed in September, as well as cash from internal sources and debt facilities.

AngloGold Ashanti has consistently executed a strategy to reduce its outstanding gold hedging position in recent years. A number of initiatives have been undertaken to accelerate this reduction of the hedge book from 11.3 million ounces at the beginning of 2008, to 3.22 million ounces in June 2010.

In September 2010 AngloGold Ashanti successfully completed a concurrent offering of equity and mandatory convertible bonds, raising gross proceeds of approximately US$1.6 billion in order to help fund an elimination of its residual gold hedge book. This has now been achieved.

Zimbabwe PM seeks help in mining country for growth

Zimbabwe's Prime Minister Morgan Tsvangirai has asked Australia for help in developing Zimbabwe's abundant mineral resources.

Mr Tsvangirai toball mill efficiency calculationsld The Australian that bilateral economic co-operation with Australia was very important to his country as stability returned and it prepared for growth.

The Zimbabwean democracy campaigner and opposition leader became Prime Minister in 2009 in a power-sharing agreement that followed years of civil rights abuses and brutal physical attacks that left Mr Tsvangirai badly injured.

He said he wanted to invite and convince Australian business that they needed to look at Zimbabwe again as a destination, "that the time to re-engage in Zimbabwe is now".

Australia's strong mining experience was especially important to Zimbabwe, he said. "A lot of mining expertise resides in Australia and we can benefit a lot from that co-operation with the Australian mining industry."

Mr Tsvangirai said there was no longer a security issue in his country: "It is purely a business consideration. The country is stable. It has all the minerals except oil. One can exploit gold, platinum, chrome, whatever.

"The country is going through a stabilisation program and I think we need to go to growth . . . and you can't have growth without investment."

He has also urged the Gillard government to suspend economic sanctions on his country until after the elections due there next year. He said sanctions could be imposed again if President Robert Mugabe and the "securocrats" who backed him prevented free and fair elections.

Mr Tsvangirai said while there was still much to be done in Zimbabwe, much had changed.

"What you need to do is make an assessment," he said. "Is there sufficient reform to warrant a reward and the encouragement of that reform? I think there is justification for the international community to remove sanctions because I think they've outlived their usefulness."

Hyper-inflation had been tamed, political reforms had been instituted, the new constitution was ready, electoral and human rights reforms had been accepted. And his once deeply antagonistic relationship with Mugabe had evolved into a working relationship. "We've moved on," he said.

Trade Minister Craig Emerson told ABC television yesterday the government was considering lifting sanctions.

"If (Mr Tsvangirai) indicates to us that there is a case for easing some sanctions, that is to reward the reformers and show the hardliners that reform does actually pay dividends, then we will be open to those sorts of arguments," he said.

Mining firms invest US$3 million in 3 manganese mines

Two local mining firms, Luapula Baextec c12 crusher parts manual pdfse Metals Limited and Genesis Group of Companies have invested US$3 million in developing three manganese mines with an annual output of 60,000 tonnes.

Genesis Group of Companies managing director Willie Crook said the joint venture mines wanted to ramp up output at the three mines in view of the improving global metal prices in the aftermath of the world economic crisis. Crook said the mines, with current output of 4,000 tonnes per month of manganese was expecting to increase this to 5,000 after acquiring new machinery. He said the companies were investing in new equipment such as crusher, washing plant and a new screener. The firms run three mines at Kansambo, Kabulu and Kabasa and the manganese from Luapula, which is largely exported to China, is believed to be one of the best grades in the world and is a key input in steel manufacturing.

Gold price rises 1.7pc to record

"The Fed language helped gold as a hedge to stockmarket volatility. This means that portfolio managers will be cement grinding mill flow diagramkeeping gold in their portfolios through to 2013," said George Gero, vice-president with RBC Capital Markets Global Futures.

Gold lived up to its "safe harbour" label, jumping nearly $US25 above its record settlement price in the minutes following the report while stock markets quickly shook off initial losses. Gold is widely considered a refuge from economic uncertainty because it keeps its value better than other assets in the face of volatility. Gold futures had finished floor trade with both the front-month and most-active contract settling at record-high prices. The Federal Open Market Committee's statement comes a day after the Dow Jones Industrial Average took a 635-point plunge on the heels of Standard & Poor's downgrade of the US credit rating. The FOMC eschewed bolder steps, like buying more...

Kyrgyz government review of Kumtor puts Centerra on edge

Centerra Gold, owner of the Kumtor mine in Kyrgyzstan, said it believes a Kyrgyz pamarket share of shanghai electric elevatorsrliamentary resolution calling for changes to the agreements governing the project isn’t legally binding.

The resolution issued today called for the creation of a state commission to review a parliamentary report on Kumtor and initiate revisions to 2009 agreements for the project, Centerra said in a statement. The resolution also called on the government to revoke decrees and licenses in relation to the project, the Toronto-based company said.

“Any discussions of the Kumtor project must take into account existing legal obligations and binding commitments,” Centerra Chief Executive Officer Ian Atkinson said in the statement. The company believes the findings of a June 18 parliamentary report are without merit, Atkinson said.

Centerra produced about 583,156 ounces of gold at Kumtor last year, according to a statement Feb. 23. That’s about 91 percent of the company’s total gold output, which also includes production from the Boroo gold mine in Mongolia.

The Kyrgyz Parliament voted to reject an alternative resolution that called for the government to take steps toward nationalization of the Kumtor project, Centerra said.

Centerra fell 1.7 percent to C$9.88 at the close in Toronto. The shares dropped 26 percent on June 22, the most in three years, after the company said the parliamentary report alleged that Centerra’s operations in Kyrgyzstan had caused environmental damage.

Buying Opportunity
“We still see this as a buying opportunity and do not think Centerra will face any renegotiation of terms, though talks may extend for a few months,” Trevor Turnbull, an analyst at Scotiabank in Toronto, said in a note today. “We expect a steady rebound following the nationalization scare.”

In April 2009, Centerra and then-majority shareholder Cameco agreed to give the Kyrgyz government an increased share in Centerra as part of a settlement to end legal disputes threatening the Kumtor project. The agreement resolved back-tax obligations, set a new tax rate and settled a clash over the size of the project’s exploration and development concessions, Centerra said at the time.

Centerra said March 27 that production at Kumtor would be lower this year because ice movement would delay access to a high-grade zone. The mine may produce 390,000 to 410,000 ounces of gold, compared with a previous forecast of 575,000 to 625,000 ounces.

African Queen Mines Secures Driller for Its Odundu Property in Kenya; Mobilization Underway

African Queen Mines is pleased to announce that it has now executed a formal agreement with Kenya-based Akili Mineralsgrid ball mill Services Limited to undertake a core drilling program at its Odundu property in Southwest Kenya's Rongo Gold Fields.

The Odundu property covers an area of approximately 97 sq. km in the Kanango gold mining area of the Migori District of Nyanza Province in Southwest Kenya near Lake Victoria. The Project is situated some 380 km. by road from the capital city of Nairobi and 60 km. N of the border with Tanzania, forming part of the rich Lake Victoria Greenstone Belt extending from Tanzania and hosting known world-class gold deposits including African Barrick Gold's Bulyanhulu and North Mara Mines, within approximately 100 km. of the Project, and AngloGold Ashanti's Geita Mine. Mobilization is currently underway, with drilling slated to commence in the near-future. An initial 2000 m program is contemplated with further meterage to be added by the Company on a result contingent basis. The drill program will be...

Court rules on Harmony acid mine water saga

The North Gauteng High Court in Pretoria ruled earlier this week that Harmony Gold has to continue paying for pumping and treating acid minchalk crushere water in and around the Orkney gold mine.

Judge Tati Makgoka had dismissed the company’s application for the court to set aside a November 2005 directive, under the National Water Act’s anti-pollution section, from the Department of Water Affairs.

Harmony Gold claimed that the directive no longer applied to it as it had sold the mine to Pamodzi Gold Orkney in 2007 and was no longer the owner. Pamodzi went into provisional liquidation in 2009.

According to the directive, Harmony and other companies mining in the Klerksdorp, Orkney, Stilfontein and Hartbeesfontein (KOSH) area of the North West province have to share the costs of pumping and treating acid mine water affecting the areas.

The directive will remain in effect until the mining houses reach an agreement on the long-term management of mine water in the area; to date, the companies have failed to come to an agreement.

Makgoka also said that Harmony is responsible as it was the owner of the property when the directive was issued.

“The applicant’s mining activities polluted and contributed to the pollution of the underground water in the KOSH area,” he said.

“The applicant derived financial benefit from its pollution activities. Without fully complying with the directive, and while the obligations in terms of the directive remained unfulfilled, the applicant disposed of its entire issued share capital to Pamodzi in August 2007.

“It is therefore not correct that the applicant is obliged to take responsibility for others’ contribution to the pollution.”

He said the directive required Harmony to take measures for, among others, pollution that occurred while it owned the land.

“There is therefore a clear causal and moral link between the directive and the applicant’s pollution activities.”

Makgoka said Harmony’s interpretation of the Act would lead to a glaring absurdity in that landholders who caused pollution through their activities could escape their obligations by simply disposing of the land.

Such an interpretation would defeat the purpose and principles of the National Environmental Management Act, the Water Act and the Constitution, he said.

“Until the applicant fully complies with the directive, the directive remains valid,” Makgoka concluded.