/ 26 March 2010

New twist in mine saga

New Twist In Mine Saga

Community members have complained about the role of Coal of Africa executive director Alfred Nevhutanda, a high-profile ANC member in Limpopo and National Lottery Board chairperson, in the rumpus over mining at the Mapungubwe world heritage site.

The Australian miner announced this week that it had received a licence to start production at its controversial Vele coking coal project in the buffer zone next to Mapungubwe and that it would begin development immediately.

This followed the minerals department’s approval of its environmental management plan, a condition for issuing full new-order mining rights.

Nick Hilterman, chairperson of the Mapungubwe Action Group, said the group is now weighing legal options to stop the mining. “We believe that the repeated stance taken by Vele management that coal mining can coexist with ecotourism is patently false and is driven purely by self-interest,” he said.

“Consequently, we will be party to all relevant legal actions to help preserve the integrity of the national treasure of Mapungubwe.”

Coal of Africa’s announcement came amid concerns from environmentalists and landowners about whether due process was followed and what they perceive as a faulty environmental management plan.

The environmental affairs department has publicly opposed the mine, saying blasting could destroy archaeological sites.

Mapungubwe, where the famous gold rhino statuette was unearthed, is 7km from the planned colliery, while the coal-processing infrastructure will be 27km from Mapungubwe Hill, a world heritage site.

This week the Mail & Guardian spoke to communities living around Coal of Africa operations, including the Vele mine and its mine at Makhado. Many community leaders voiced concern about Nevhutanda’s political links.

It is understood that Coal of Africa appointed him, in part, so that he could lobby community support.

Nevhutanda, a former ANC Limpopo chairperson described by politicians as a “smooth talker”, was a key ANC fundraiser in the province during the last election and sits with ANC treasurer Mathews Phosa on the board of Alliance Mining.

He was also an adviser to provincial transport ministers and former national transport minister Jeff Radebe, now minister of justice. He has a share in a transport business.

Critically, Nevhutanda is a friend and adviser of Venda king Khosi Ramabulana, who will benefit from Coal of Africa’s black empowerment deal. This involves the issue of 50million options, representing 10,85% of issued share capital, to Firefly Investments.

Under the agreement, Firefly will distribute options to the king, who is claimed to represent the Mudimeli, Musekwa, Makushu-Musholombi and Tshivhula clans. Firefly is owned by Mosomo Investment Holdings and Mtungwa Resources, led by Kgomotso Mosehla and Patrick Ntshalishahi, businessmen with links to empowerment mining group Mvelaphanda.

Many leaders claim the empowerment deal excludes them, while some feel that it is being used to buy the support of certain communities.

Coal of Africa spokesperson Tshepo Mophiring said the deal had to include communities, but certainly not “all” communities in the area.

Theva Nephawe, a leader of the royal Venda community, which lives around Mapungubwe, complained that Nevhutanda has “marginalised” his own clan. “He didn’t contact us; we never heard from him.”

Members of Nephawe’s community believe they are true Venda royalty and that the king is hijacking Mapungubwe for his own purposes. “We have graves in that area — the mine will destroy those,” he said. “It will destroy our heritage.”

Nephawe said his brother, the “real king of Venda”, was outraged. Chief Muelekani Nengudza had gathered 3 000 signatures protesting against the mine.

Community leader Sam Mafukaduvha, who opposes Coal of Africa’s Makhado mine, said community members had instructed lawyers to stop the company because they were excluded from the consultation process. He accused Nevhutanda of engineering the exclusion, saying Nevhutanda had pretended to represent communities at stakeholder meetings before being appointed a Coal of Africa director.

Other critics told of late-night calls from Nevhutanda, saying they felt uneasy about his tone and even threatened. Nevhutanda denied making calls, while Coal of Africa denied that he was used to railroad communities or sidestep opposition.

“Coal of Africa ascribes to principles of integrity and requires all its employees to behave ethically at all times,” Mophiring said. “No bribes or threats were used in discussions with any community members.”

Nevhutanda said that as a mu-Venda, he had served the king in various committees on “an ad hoc basis” and allegations about his conduct and political links were unfounded.