States tailing dumps battle with De Beers heads to SCA
The government has taken its battle with mining giant De Beers to the Supreme Court of Appeal, lodging an application for leave to challenge a Bloemfontein High Court ruling last month in favour of De Beers on the control of diamond mine dumps said to contain diamonds worth billions at the Free States Jagersfontein mine.
A Business Day report says the move will see the continuation of the battle over the tailings dumps that began last year when De Beers approached the Bloemfontein High Court for a review of a prospecting right granted to black empowerment company Ataqua Mining to mine the Jagersfontein tailings dumps, created by De Beers mining activities dating from 1871. At the heart of the dispute is whether the new Mineral and Petroleum Resources Development Act applied to tailings dumps, and whether De Beers was the owner of minerals found in the tailings dumps. The Minerals and Energy Department and Minister Buyelwa Sonjica argue the judges erred in finding the tailings dumps were not subject to control by the new Act, which made the state custodian of all mineral assets. The consequences of the judgment are far-reaching. The tailings dumps controlled by De Beers only are estimated to be worth billions of rands. The report says the mining industry has taken keen interest in the judgment as most companies are unsure of the legal position. Full Business Day report