Australian mining junior awarded dubious license in South Africa

South Africa has awarded a small Australian mining house access to one of the county’s most treasured bio-diversity hotspots, undermining the country’s ability to drive sustainable economic development.

Mineral Resource Commodities (MRC) has been granted rights to mine a portion of the Xolobeni mineral sands project, on South Africa’s Wild Coast.

The move is disappointing for businesses hoping to cash in on the African giant's sustainable eco-tourism potential in the area. The country’s environmental affairs minister, Marthinus van Schalkwyk, is in hot water over the decision as his department failed to meet the deadline to object to MRC’s request by several months.

The award is embarrassing to government who have been trying to protect South Africa’s natural heritage sites, as well as driving policy to wean the country off mining in favour of more sustainable growth. MRC pushed the application through before two pieces of legislation, which would have scuttled its plans, were passed.

Had the Integrated Coastal Management Bill or the National Environmental Management Second Amendment Bill been enacted, the MRC’s application to mine Xolobeni’s dunes would have been blocked according to opposition Democratic Alliance MP Gareth Morgan.

The Australian stock exchange-listed firm would now have access to the Wild Coast’s pristine beaches in the hope of extracting titanium-related minerals. The company said it would provide basic infrastructure and services. The most likely includes roads to transport minerals to ports as the Wild Coast is largely without infrastructure, and basic housing for some employees.