11 June 2021 - NW1622
Lorimer, Mr JR to ask the Minister of Mineral Resources and Energy
1) What is the position regarding the mining licence of the Shiva Uranium and Gold mine; 2) Whether buyers for the mine are still being sought; if not, what is the position in this regard; if so, what are the relevant details; 3) Whether there have been any offers to buy the mine; if not, what is the position in this regard; if so, (a) what are the reasons the offers were refused, (b) are there any prospects for a sale this year and (c) on what date will his department withdraw the mining right if no buyer is secured; 4) Whether his department communicates with the previous employees of the mine; if not, what is the position in this regard; if so, (a) how and (b) on what date; 5) What (a) is the position regarding the mine’s rehabilitation guarantee, (b) will the estimated cost of rehabilitation be and (c) amount of it will be funded by the rehabilitation guarantee?
(1) Shiva Uranium has been issued with three mining rights, and they are all valid
(2) This matter is still before the Business Rescue Practitioner (BRP) and is yet to be finalised. The Department does not get to be involved in the process of appointing the potential buyers, it is only once purchase has been concluded wherein an application to transfer ownership would be made in accordance with the provision of section 11 of the MPRDA. At this stage, such application has not been brought for our attention as the BRP’s process is not yet concluded.
(3) (a) Please see (2) above
(b) Please see (2) above
(c) The date cannot be confirmed as the rescue process is still underway
(4) (a) The Department is of the view that the issue of communicating with previous employees of the mine remains to be the responsibility of the BRP as they are assuming the responsibility of the right holder (b) 31 May 2021
(5)(a) There is financial provision to the value of R61 424 275.00 that has been deposited into Rehabilitation Trust (Cash Deposit) held by the Department.
(b) The environmental liability that was determined by the independent environmental assessor (before the mine went through the BRP’s process) was estimated at R101 018 658. 57, the mine was further directed to address the shortfall of R39 594 383.57, which is still pending.
(c) The shortfall of financial provision has be discussed with the Business Rescue Practitioner in the sense that the potential buyer will be required to demonstrate that they have financial capacity to address the required financial provision before section 11 application is finalised.