The DA in Mpumalanga has written to the Minerals Council of South Africa to lodge an investigation into allegations that former Gupta mine in Hendrina, Optimum Coal, is operating illegally.
While doing an oversight at the mine on Tuesday, the DA was informed by Hendrina residents and former employees that Optimum Coal Mine is currently operating illegally in the area without a licence. They also alleged that the Department of Mineral Resources (DMR) and Minister Gwede Mantashe are aware of this, but turning a blind eye as some ANC officials and National Union of Mine Workers (NUM) officials are allegedly benefitting from the illegal mining.
The complainants also claimed that the mine has become a threat to the environment around Hendrina. Neighbouring farmers have also complained about possible damage to wetlands.
In 2015, Optimum Coal Mine was leveraged out of Glencore’s hands by failing ANC officials straight into the hands of the infamous Gupta brothers. Because of poor management, the mine which has been operating since 2002, was forced to shut-down in 2018. Over 4000 employees and 500 contractors lost their jobs. The mine is under business rescue since its closure in 2018 and its issues are currently in courts to determine if it would open under new management.
According to the complainants, in September 2020, 7 contractors were appointed by the Business Rescue team to do Mini Pit Mining in Optimum for only 8-months so that creditors can be paid. They were afforded the license by DMR for 8-months, which lapsed in May 2021, but the 7 contractors are still mining without a renewed licence.
The DA would then like the Minerals Council of South Africa to use the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) in lodging an investigation into the allegations above.
Section 5(4) of the MPRDA specifically prohibits mining without the required statutory authorisation, so Optimum Coal Mine is in bridge of this Act if they are indeed mining without a valid licence.