Saldanha Bay. Shell start gas Exploration on the West Coast

Shell Upstream International has joined the hunt for deep-water oil and gas off South Africa's West Coast, but one of its priorities is to quell any hopes of quick riches.

The Dutch group sent executives this week to hold public consultation meetings in Cape Town and smaller centres like Lamberts Bay, Springbok and Port Nolloth.

"We are trying to keep expectations to a minimum," said Kim Bye Bruun, the Upstream unit's communication manager. "Nothing will be done on the ground for the next few years. This is a desktop study."

Shell won rights last November to explore a deep-water block the size of the Netherlands about 150km offshore, from Saldanha Bay to Port Nolloth.

If the desktop study, which could take three years, indicates areas of interest, seismic studies will be done. If those prove positive, test holes will be drilled.

It is a long process with no guarantee of results as shown by the Ibhubesi gas field closer inshore. Forest Exploration International found significant reserves there 10 years ago, but no gas has been piped ashore. In fact, no pipes have been laid to carry it.

Forest Exploration's commercial director, John Langhus, said it was impossible to say when the first gas would be delivered. "We can't predict that until we know what the demand for the gas is," he said.

"We're negotiating with parties about offtake of the gas. Once we get the critical level of commitments for the gas, then we can decide to move that forward."

Langhus said Forest saw the South African market as a big one, from electricity generation to industrial and residential use. "We're very optimistic about the growth of the market once it kicks off."

The problem is getting the market to kick off. Doug Kuni, managing director of the Independent Power Producers Association, said energy companies had yet to strike a deal with a South African buyer that would make it economical to start producing.

"All the exploration companies are spending dollars; they will require a dollar price for the gas. They will put it into a power station and produce electricity that will be paid for in rand. They don't want to take the currency risk."

Kuni said the energy companies wanted a Brent index in the pricing, but South African buyers were reluctant to commit. "Who knows where the price of oil will go?"

There had been more than 10 years of talks without a solution.

The minister of energy, Elizabeth Dipuo Peters, said in parliament this week that her department was in talks with a company to supply about 1500MW of electricity from a gas-fired power station on the West Coast, but she gave no details. "A memorandum of understanding will be signed once all the negotiations are finalised," she said.

Source timeslive.co.za

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Expansion plans for Saldanha Bay port on the West Coast

A remarkable transport/engineering feat happened during last year’s Christmas season – on 27 December – at the Sishen railway station. It literally set the wheels in motion for far-reaching results, especially so for Saldanha’s iron ore export effort.

On that day the last of ten trains left the Northern Cape’s iron export station for Saldanha, almost 1 000 km to the south. Its successful departure would determine whether the iron ore team could claim victory by reaching the one million ton per week throughput mark. And so it did, to much jubilation amongst the teams involved.

There was purpose to this exercise – to push iron ore exports, through the Port of Saldanha, at a rate of 60 million tons a year on a continuous basis by the end of this year. SA Port Operations is under continual pressure from the Northern Cape mining operations, especially Kumba and Assmang, to increase export capacity.

During a visit to the bulk terminal in Saldanha, chief executive Karl Socikwa last month told CBN the third phase (1C) of the terminal expansion plan is now in full swing, with the aim to lift export capacity to 60 million tons per annum. This comes in at a cost of R630 million, all earmarked to improve the infrastructure at the port.

During the past financial year, ending March 2010, the port loaded a record of 44 million tons of iron ore, almost 70% of it for Far East markets, more notably China.

During 2004 Terminal Expansion Phase 1A was completed, at a cost of R950 million, lifting capacity from 28 mtpa to 36 million tons per annum. Last year Terminal Expansion Phase 1B was completed, expanding capacity to 47 mtpa.

The current ramp-up of the corridor to 60 mtpa is reliant on the channel achieving certain milestones within certain pre-defined time frames.

One of these critical milestones was for the channel to move from an average of 920 000 tons per week to around a million tons per week in the first quarter of 2010. Breaking through this psychological barrier early was necessary to set the tone for this year. Now it’s all about sustainability at these levels.

The bulk terminal at the Port of Saldanha, which is the last link in the iron ore corridor supply chain is where all the action happens in terms of offloading, stacking and stockpiling, reclaiming and loading the ore onto bulk carrier ships.

It is estimated that well in excess of R5 billion has so far been spent to increase iron ore exports from the deep-water port to meet the growing demand for South Africa’s high-quality iron ore. Although volumes have been down of recent months, all seems set to sustain the one million ton target to create capacity ahead of demand.

Currently the infrastructure at the port comprises two rotary tipplers, four stacker reclaimers, two shiploaders and 25 conveying systems, providing the terminal with a capacity to off-load 10 000 tons per hour onto a ship.

But much money will still be spent on to expand infrastructure as the port is gearing up to increase capacity to more than 80 million tons per annum in the not too distant future.

Environmental impact studies are needed for the establishment of new infrastructure on some 141 hectares of land. This part of the proposed project could have the biggest impact on the sensitive environment of the bay and lagoon.

The plan is to reclaim an additional 50 hectares of land within Saldanha Bay. This will be done by dredger. The shipping channel will be deepened and the material recovered will be used for the construction of new shipping berths.

Another footprint area which could be impacted, is 35 hectares of land in the undisturbed dune area on the coast between the iron ore quay and the Saldanha Mittal Steel Plant. The intention is also to fill in the so called ‘Oyster Dam’ to create more space for stockpiling iron ore within the confines of Saldanha Bay.

The size of trains and the number of ships calling at Saldanha’s port will also increase when the facilities are enlarged to handle more iron ore. Ships calling at the port of Saldanha will also increase in size and number. Two ships a week, being about a hundred a year, called at Saldanha in 2007 to load iron ore. Even though bigger ships will be loading, it’s anticipated that shipping volume will now increase to more than 200 vessels a year.

Source cbn.co.za

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Langebaan Lagoon could suffer massive environmental disaster

A "shocked and embarrassed" Public Works Minister, Geoff Doidge, says he was unaware his department was constructing a R100-million boat yard for the SANDF's Special Forces in Langebaan Lagoon without the necessary environmental approvals.

He has now asked his Water and Environmental Affairs counterpart, Buyelwa Sonjica, to set up a joint task team from their departments to undertake a "thorough" investigation.

Sonjica's officials are furious that Doidge's department reneged on its promise last year to stop work on the project, other than to stabilise the roof of the boat yard, until the required environmental authorisations were approved.

And the breaking of this commitment also caused Sonjica unwittingly to give an untrue answer to a parliamentary question by the DA in March.

Doidge's department has already paid a R93 000 fine for starting the project without doing the necessary environmental impact assessment and without authority to work in a protected area: the West Coast National Park.

Langebaan Lagoon is also proclaimed as a internationally important bird conservation site under the Ramsar Convention, which South Africa has signed.

"Green Scorpions" - environmental management inspectors - were told during a site visit last August that the project had been started without applying for environmental approval "as a result of time constraints". However, it has been on the cards since at least 2006.

After the inspectors' visit, Water and Environmental Affairs deputy director-general Joanne Yawitch sent Doidge's department a formal letter, notifying it of her intention to issue a compliance notice under the National Environmental Management Act because of the "unlawful" construction and contravention of "numerous provisions of the protected areas legislation".

The notice would have forced all work on the project to stop until environmental approvals were given.

But spokesman for Sonjica's department Albi Modise said it had decided not to issue a compliance notice because the public works department (DPW) had responded promptly with an appeal.

"The decision not to issue the compliance notice was also based on the fact that DPW has a firm undertaking that work would only continue on the roof stabilisation and that other activities would cease pending the outcome of the appeal.

"The department recently became aware that DPW has reneged on their commitment... it appears as if the DPW has proceeded in direct contravention of its undertaking and failed to inform this department until recently.

"This is viewed in an extremely serious light and will be taken into account in determining enforcement action moving forward."

By John Yeld
Environment & Science Writer

Source http://www.iol.co.za

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Table Mountain view will never be the same again.

Breaking news on the SELI 1 Seli 1 is here to stay and as predicted will become a permanent feature on our shore line. The big swell of the first winter storm has been battering her for several days and has put the final nail in her rusty coffin. The area was named Table View for the great views of Table Mountain, which is one of the seven wonders of the world and. Tourists from all over the world flock daily to our beaches to take photos of the spectacular views, and to spend some time on our beautiful beaches, but now they will have to photo shop their photo’s or buy post cards to get photo’s of the mountain without a shipwreck. They will also have to content with the sticky oil on the beaches. Our government is so keen on changing names of towns and cities I wonder if they will be changing the name from Table View to Seli 1 view? I am sure they would rather spend the money on changing the name of maritime maps, have a huge renaming party and fly Jacob Malema down to do the offici al opening of Seli 1 Boulevard than on trying to remove the wreck. Just as Table Mountain one of the seven wonders of the world is, so is the Seli 1 one of the seven stuff ups of our government and maritime authorities. 1st. Allowing the crew of the ship to get on a aeroplane and to leave the country. (They should be cleaning dishes to help paying for the mess they left us). 2nd. Allowing uninsured ships in our waters. 3rd. Not putting pressure on the Turkish government to put pressure on the ships company to take responsibility for the disaster. 4th. Taking 3 months to chat over tea, cake and picnics in meetings while the weather was absolutely perfect, with small waves and hardly any wind before deciding that they would slowly start the removal of the oil and then the coal. NO RUSH 5th. The skill full way all the government departments past the hot potato. (They would make any rugby team proud with their slick handling). 6th. The skill full way they past the buck. Now other governments departments will have to get involved to help pay for the mess and clean up. 7th. The fact that they would rather wait for the ship to break up and cause a lot of damage to the ecology than to try to remove it. I am sure if FIFA asked them to move it, it would have been removed within one week. Yes, the Seli 1 did improve the banks for surfing, but at what cost? It will be spewing oil and debris on to our beaches, polluting the water and beaches killing birds and sea life and we will be getting oil spots on our wetsuits, feet and equipment for months and years to come. Read the official press release of SAMSA Source atlanticsurfco.co.za News sponsored by West Coast Office National for all your printing needs.

ArcelorMittal SA seeks quick end to row with kumba

The South African unit of ArcelorMittal, the world's largest steel maker, on Tuesday said it was cooperating with Kumba Iron Ore to expedite a prolonged dispute over iron-ore supply amicably.

ArcelorMittal South Africa also said steel prices were set to rise on recovery of global demand, restocking and a boom in South Africa's economy, particularly in the construction industry.

"We are co-operating (with Kumba) to take the matter to arbitration," Nonkululeko Nyembezi-Heita, CEO of ArcelorMittal South Africa, said at a meeting for shareholders.

She later declined to provide further details to Reuters.

Kumba, a unit of global miner Anglo American, terminated the preferential pricing deal with the steelmaker, claiming that the company had failed to renew its mining rights in Sishen mine as per South African mining laws.

Kumba supplies ArcelorMittal from the Sishen mine.

"We remain firmly optimistic that the supply agreement (with Kumba) is valid and we are taking necessary steps to protect our rights," Johnson Njeke, the unit's chairman said at the same meeting.

Nyembezi-Heita later told Reuters that the refusal by Zimbabwe President Robert Mugabe to allow ArcelorMittal to take over the country's Zisco Steel, was a lost opportunity to show foreign investors Harare was changing its policies.

"What Zisco would have offered us was a presence in a part of the world where we could service landlocked neighbouring states, plus participating in the rebuild of Zimbabwe as a country, obviously now we have lost that," she said.

"But we haven't lost the strategy and ambition for our Sub-Saharan footprint," Nyembezi-Heita said.

Nyembezi-Heita said ArcelorMittal South Africa planned to grow its market within Sub-Saharan Africa in countries like Zambia, Namibia, Botswana and also Ghana.

Nyembezi-Heita said the global economic climate had improved and that she saw this supporting prices.

"We are seeing prices being traded up and up. There is also restocking and a rebound in steel demand," Nyembezi-Heita said.

Edited by: Reuters

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Langebaan boatyard and jetty in deepwater with EAD

The National Department of Public Works (DPW) has been fined R93 000 by its Environmental Affairs Department counterpart for developing a R100 million boatyard and jetty in the sensitive Langebaan Lagoon without environmental approval.

In March, Environment Minister Buyelwa Sonjica told Parliament that the DPW had stopped construction of the project, which is being built for the SANDF's Special Forces task force at its Salamander base at the restricted tip of the western arm of the lagoon, pending a decision by her department on whether to grant environmental authorisation retrospectively.

But angry Langebaan residents say work on the site continued and had included dredging, with the dredged material - including fatty residues from the former whaling station on the site - being dumped elsewhere in the lagoon.

Much of the Langebaan Lagoon falls within the West Coast National Park, and it is a migratory waterbird site of international significance, protected under the Ramsar Convention to which South Africa is a signatory.

Jaco Kotze, chairman of the Langebaan Ratepayers' and Residents' Association, who was one of a small delegation taken on a site inspection recently, said Sonjica had misled Parliament with her reply.

"We are very dissatisfied... the operation is going on."

Kotze said members of his association had become aware of "a lot of activity" at the base last April. They found the DPW was breaking down an old asbestos boatyard and were told a new facility would be built on the same environmental "footprint" and that there would be three pylons in the sea with a gantry.

"Jimmy Walsh of the West Coast Biosphere Reserve told them, 'You guys are not above the law', and we insisted that they apply for a Section 24G in terms of Nema (retrospective authorisation under the National Environmental Management Act) and that all operations cease."

But when they checked again in January, they found a "huge" 12m structure was being built on the water's edge, concrete columns were being put into the seabed to support a jetty of about 120m, and the area had been dredged.

"We understand the need for this facility, but they cannot just carry on irrespective of the law," said Kotze.

Responding to questions in Parliament by the DA, Sonjica said her department had issued a notice of intention to issue a formal "compliance notice" to the DPW on September 17 last year, after establishing that no environmental authorisation had been obtained.

"Following the issuing of this notice, all associated activities, such as the dredging within the 100m high water mark of the sea, ceased. The only activity that is continuing on the site is the stabilisation of the roof structure."

In December, the DPW submitted a Section 24G application to rectify the illegal construction.

Albi Modise, chief director for communications in Sonjica's department, told the Cape Argus last week the DPW had paid the R93 000 fine in full on March 23 and that his department had not yet reached a decision on its application for retrospective approval.

The DPW was asked questions about this project by the Cape Argus last Tuesday. No response had been received by the time of going to press.

Source www.iolproperty.co.za

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Strike at Saldanha port, Kumba has iron ore for 7 days.

Thousands of South African transport workers went on strike on Monday at logistics group Transnet, threatening to cripple rail, fuel pipelines and port operations in Africa's biggest economy.

The strike - the latest in a series of public protests ahead of next month's soccer World Cup - could affect coal and iron-ore exports, fuel distribution, and shipping.

Power utility Eskom said the strike, which began after failed wage talks, would have no impact on the transport of coal used to power its plants, as only small amounts of coal were carried by rail, with the rest supplied by conveyor belts directly from mines.

Transnet does not run passenger train services,

The South African Transport and Allied Workers Union (Satawu) said it expected all of its 20 000 members to strike. Another union, the United Transport and Allied Trade Union (Utatu) has urged its members to consider Transnet's latest pay offer and to report for duty on Monday.

If Utatu's members reject the offer, the union said it would join the strike by Wednesday. The two unions represent 85% of Transnet's workforce of about 54 000 people.

Both unions want a 15% pay increase. Transnet has now offered 11%.

"We can keep this strike going as long as the employer has not met our demands," saidJoseph Dube, Satawu's secretary for the KwaZulu Natal province.

Fifteen people were hurt when police fired rubber bullets at them in the port city of Durban after they failed to follow a police order to disperse, the SAPA news agency said.

Transnet and coal, iron-ore, ferrochrome and fuel producers, said they were confident they could supply customers for days due to built up stocks at the ports.

"The strike will not have a material immediate impact on our exports," said Pranill Ramchander, an Anglo American spokesman.

The group's thermal coal unit is the country's biggest coal exporter. South Africa exports most of its coal to power stations in Europe, but increasingly to Asia as well.

For now, operations at Richards Bay Coal Terminal, the world's largest coal export terminal, have been running as normal, Chief Executive Raymond Chirwa said.

"Depending on ship arrivals, our stocks could last us for three to four weeks," he said.

Kumba Iron Ore, also an Anglo unit, said the company had sufficient stocks at Saldanha port to keep loading vessels for at least seven days.

If the strike is prolonged, it could have a serious impact on the country's ferrochrome industry, the world's largest. Hernic Ferrochrome, a unit of Japan's Mitsubishi Corporation, relies on Transnet for 75% of its transports.

Freshgold SA Exports, which ships fresh produce out of the country said its operations were being hit.

"The strike has physically halted our container loadings from this morning ... if it's a week the impact will be quite severe," said Freshgold MD Pieter von Maltitz.

news source http://www.engineeringnews.co.za

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Kumba Saldanha Bay, considers terminating supply to ArcelorMittal SA

South African iron-ore miner Kumba Iron Ore (KIO) on Tuesday effectively moved its ongoing dispute with ArcelorMittal South Africa (AMSA) from the realm of a pure dispute over pricing, into one that could now also affect supply, indicating to Engineering News Online that it could as "a last resort" terminate supply to Africa's largest steel producer.

In a note to shareholders, the JSE-listed miner said that, unless there was urgent resolution on an interim pricing and payment mechanism, the basis upon which it would continue to supply iron-ore to the steel producer could be affected.

KIO did not immediately indicate a timeframe for reaching such an agreement, but a spokesperson told Engineering News Online that the time period should not exceed eight weeks.

The miner also did not immediately elaborate on what options it was considering for the 6,25-million tons that its supplies yearly to AMSA from its 74%-held Sishen Iron Ore Company (SIOC). However, KIO stressed that it did indeed have "other options to sell the ore".

"We have an agreement with Transnet to deliver an extra four-million tons a year in 2010 and 2011 charging a 'super tariff'. We cannot discount the possibility that, if we cannot reach agreement, a last resort would be to terminate supply," the spokesperson toldEngineering News Online.

However, she also stressed that KIO did not believe it was in anyone's interests to stop supply "and we are attempting to do all in our power to avoid such an outcome".

"We have made extensive efforts to come to an agreement with AMSA and have been unable to do so," the spokesperson said.

In its statement to the stock exchange, KIO strongly denied that it had told AMSA that it would continue to invoice on the basis of cost-plus 3% until the dispute had been resolved, as had been stated by the steel producer in its own April 29, 2010, notice to that market.

AMSA also indicated in the same statement that it had raised a contingent liability reflecting the "price derived from an export-parity principle and the contractual cost-plus 3% price, in the event SIOC prevails in the arbitration".

"That statement is incorrect," KIO said.

Instead, the miner argued that its announcement of April 19, 2010, reflected the "true position": "Namely that SIOC required AMSA to accept its interim proposal that AMSA pay the contractual price (cost-plus 3%) to SIOC and the difference between that price and the interim price proposed by SIOC into escrow, or provide a suitable guarantee for its payment in the event of SIOC being successful in the arbitration".

KIO told Engineering News Online that the "contingent liability" would not suffice as a guarantee.

However, AMSA spokesperson Julian Gwillim said that the JSE-listed steel producer stood by its statement of April 29, 2010, and would not enter into negotiations with KIO on the merits of the dispute through the media.

The two companies have been in dispute over the future pricing of iron-ore flowing from the Sishen mine since February 5, when SIOC notified AMSA that it was cancelling a favourable supply deal, struck in 2001, on the basis that AMSA had failed to convert its 21,4% undivided share of the Northern Cape mine in line with the demands of the Mineral and Petroleum Resources Development Act.

SIOC began invoicing AMSA on commercial terms as from March, and AMSA CFO Kobus Verster revealed last week that the difference between the the old agreement and the new invoice was $100/t, with 350 000 t having been supplied during the month.

AMSA has also started charging South African steel consumers a controversial R600/t-plus surcharge as from May 1, 2010, in a bid to partially offset the impact of the rise in iron-ore costs. The proceeds would be recorded as a liability in the group's financial accounts and would be returned to consumers should AMSA prevail in its arbitration dispute with KIO.

The Department of Trade and Industry has lodged a complaint of abuse of dominance over the surcharge with the Competition Commission, while consumers are up in arms over what appears to be an attempt by AMSA to recoup costs associated with its own corporate misjudgement.

AMSA has also confirmed with Engineering News Online that it will increase steel prices by between 2% and 17% as from June 1, 2010 - news that was greeted with anger by steel consumers.

Source http://www.engineeringnews.co.za

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Steel prices increase Saldanha Steel will benefit, but not the consumer.

JSE-listed steel producer ArcelorMittal South Africa (AMSA) confirmed to Engineering News Online on Monday that the price of flat and long steel for delivery from June 1, 2010, would increase by between 2% and 17%, depending on product type – news of the increase was met with anger by steel consumers.

The June increases would be over and above the R600/t surcharge instituted from May 1, 2010, as part of a bid by AMSA to mitigate against the impact of a possible surge in iron-ore costs, precipitated by the cancellation of a favourable supply agreement with Kumba Iron Ore's (KIO's) Sishen Iron Ore Company (SIOC).

SIOC cancelled a long standing cost-plus 3% deal in February, citing AMSA's failure to convert a 21,4% undivided share of the mineral rights at the Sishen iron-ore mine, in Northern Cape province, as is required by South African mining legislation, as the reason for the decision.

The matter is currently the subject of a corporate dispute, which should go before an arbitration panel later this year, but which, in AMSA's view, could take up to 18 months to resolve.

In the interim, AMSA is being invoiced on commercial terms, but is only paying at the cost-plus 3% level. It is placing the proceeds of the surcharge into an escrow account, marked as a contingent liability in its accounts, pending the outcome of the arbitration process.

AMSA has confirmed that the difference between the cost-plus 3% invoice and the commercial invoice received in March was a whopping $100/t on the 350 000 t received from SIOC in March.

Should AMS prevail in its dispute with KIO, it has promised to reimburse consumers. But it is unclear how far down the supply chain such a reimbursement could feasibly reach, owing to the fact that many end consumers buy their steel from traders, or merchants.

The Department of Trade and Industry (DTI), which referred AMSA to the Competition Commission when the surcharge was announced, claiming that it amounted to abuse of dominance, has also questioned how the proposed reimbursement could feasibly be implemented.

The June increases, which were communicated to customers over the weekend, were also the first "base" price rises on domestic carbon steel this year, with prices having been rolled over since December 2009.

In fact, the steel group cut prices in November, having increased prices between July and October, when international selling prices began recovering from their precipitous recession-linked declines of late 2008 and early 2009. Prior to July, the price of some steel products sold domestically fell by as much as 60% from the record levels achieved during the first half of 2008.

In the flat-steel segment, plate prices were set to increase fastest from June, at around 17%, while galvanised steel would increase by a more modest 4%. Prices in the more competitive long-steel environment would rise by between 2% and 4%, depending on product type.

AMSA insisted on Monday that it was continuing to set domestic selling prices on the same basket formula that it had been using since moving away from import-parity pricing earlier in the decade.

Prices are set after analysing domestic prices in four markets (the US, Germany, Brazil and China) and adjusting these to its expectations for the South African currency for the forthcoming month - the weaker the currency outlook, the higher the steel price. The South African currency was one of the best performing in the world during 2009, and showed continued resilience during the first quarter of 2010.

DOWNSTREAM ANGER

Downstream steel users were equally outraged by the surcharge and by the prospect of the base price increasing in June.

Africa Cellular Towers (ACTOWERS) GM for the powerlines division Nick van der Meschttold Engineering News Online that the increases would place untenable pressure on the company's manufacturing unit.

He said that it had reached a point where it was cheaper to import finished product from India and China than to source the steel, which comprised some 70% of the cost of the final product, locally. The company designs, manufactures and installs towers for the cellular industry, as well as for the power transmission and distribution market.

He said it was also unclear whether it would be able to pass on the surcharge to its customers, owing to the uncertainty as to whether the surcharge could be reflected in the cost price adjustment (CPA) index complied by the Steel and Engineering Federation of South Africa. "If it's not in the CPA index, then we are going to lose money automatically," Van der Mescht said.

A steel trader canvassed by Engineering News Online said that there was also uncertainty as to whether the surcharge would be maintained at R600/t, or whether it too was subject to adjustment, along with the spot iron-ore price.

Another steel consumer told Engineering News Online that there could be no justification for the surcharge, owing to the fact that it was an attempt by AMSA to recover the costs brought about by its own "corporate neglect" in failing to convert its Sishen mineral rights.

Speaking on condition of anonymity, the consumer argued that promised of the surcharge reimbursement was "entirely unsatisfactory", as the proceeds would, in most cases, flow to the merchants rather than to the end-consumer.

Van der Mescht added that ACTOWERS did not believe "for one second" that it would recoup the cost of the surcharge, adding that the immediate cash flow effect on its manufacturing unit was devastating. He said that its facility had the capacity to convert 3 000 t/m of steel, but that it was currently operating well below that level.

AMSA said last week that it was in the "process of evaluating various alternative options to determine the most appropriate mechanism to implement such a refund in consultation with its customers for the benefit of the steel industry in South Africa".

Source http://www.engineeringnews.co.za

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West Coast town Elands Bay is under threat from toxic waste.

Wavescape users have been urgently requested to fight a mining company's application to prospect for minerals inland from Elands Bay, a move expected to bring catastrophic environmental damage to the area.

The proposal by Bongani Minerals is believed to be a precursor to destructive open cast tungston mining in a water catchment area that feeds into Verlorenvlei, one of few freshwater coastal lakes in South Africa. The rivermouth of the vlei is located at the base of the surfing point at Elands.

Members of the Verlorensvlei Coalition, who oppose the move, say that Bongani Minerals had tried to get mining rights on a farm in the Moutonshoek Valley. However, the application was withdrawn after an assessment indicated that the toxicity of the processed tungsten would have a negative impact on the vlei, the point and in turn the tourism industry.

However, according to the Verlorensvlei Coalition who oppose the mining bid, Bongani Minerals has instead lodged a Prospecting Right application with the Department of Mineral Resources (DMR). According to the coalition, this would take five years, cost R23 million, and be a precursor to devastating mining operations.

The coalition says that mining on farmland is madness given possible food and water safety issues, not least the potentially devastating effect it could have on the eco-system of the vlei. Minning for tungsten is a destructive process and could effect up to 4,000 sq kms of the area.

"For the people who live in the district the true issue is about the threat to their way of life, food security, provision of water, air quality and the potential for massive environmental degradation throughout the Verloren Valley from Piketberg to the Atlantic Ocean.

"The rains which fall on the Piketberg feed the Krom Antonies River which has sustained farming in the fertile Moutonshoek Valley for 300 years. The Piket-bo-berg and the valley produce export fruit, nuts, olives, potatoes, proteas and world class horses and provide work and a livelihood for hundreds of local people. The Krom Antonies River feeds the Verloren River which runs past Redelinghuys on its way to the sea. This water constitutes 60% by volume of that received by the Verlorenvlei which forms an estuary at Elands Bay and functions as a nursery for the local fishing and crayfishing industries.

"The quality and flow of water reaching the Verlorenvlei and thus the sea is at high risk of contamination by tungsten which becomes unstable during the mining process and has a strong affiliation for water. The fledgling tourist industry in the district, based on burgeoning guest houses, nature reserves and the famous left hand break at Elands Bay, may cease to exist."

The coalition has urged Wavescape users to object. Visit their website or go straight to this page on their website to voice your urgent objection.

The deadline is the end of the month, so time is tight. Do it now!

Source http://www.wavescape.co.za

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Elands Bay could become toxic

Did you know that both of South Africa’s world class pointbreaks, J-Bay and E-Bay, are under threat from the Department of Minerals and Energy? If you’re a surfer, you’d at least be aware that South Africa is indeed blessed with two of the world’s most perfect pointbreaks, on either side of the country. It’s like some kind of divine symmetry for surfers. On the East Coast, 80 clicks South of Port Elizabeth, God left his right thumbprint on the coastline at a place called Supertubes, Jeffreys Bay. Waves can literally wrap in and unfold serving up kilometer long rides. It’s widely regarded as the world’s best right hand point break. It’s really an unrecognised World Heritage site that brings in millions of Rands worth of tourists each year and supports the economy of an entire town and provides the impetus for much of South Africa’s surf industry.

On the West coast, about 3 hours drive out of Cape Town is Elands Bay, possibly the world’s most perfect left hand pointbreak, aka God’s left thumb print, and it’s becoming increasingly popular and important in terms of all those tourist dollars that get deposited there by local and international surf tourists. Being in the desert and a bit of secret until late, Elands Bay’s development has been a little bit slow, but there are an increasing number of local businesses, backpackers, hotels, shops mushrooming in the town. And property prices have exploded in the little West Coast dorpie, all because the underwater geography funnels the Atlantic swells into perfectly shaped peelers, running left to right. So magnetic are the waves at Elands and Jeffries, that thousands of people from around the world spend their hard earned bucks to travel thousands of miles to ride these waves, for absolutely no good reason whatsoever beyond the fact that it’s really fun.

Distant Memories of Elands

But at the same time the Department of Minerals and Energy seems hell bent on destroying both of these routinely bankable, low impact, sustainable tourist attractions, and natural heritage sites, in the narrow pursuit of profit, disguised as development and job creation.

On the East Coast, the whole stretch from Jeffries Bay to St Francis is under threat as the preferred site for Eskom’s new nuclear power station, at Thuyspunt, which sits just 10 kilometers West of Seals. Not that we have a problem with Nuclear energy. It sure as hell beats Coal-fired power stations, even if we don’t really know what to do with all that dangerous nuclear waste it produces. But South Africa has nearly 3000 kilometers of coastline, surely Eskom and the Department of Minerals and Energy could find a more suitable, less populated spot that doesn’t threaten some of the world’s most prized surf real estate?

Now let’s shift our attention across the country to Elands Bay, that just happens to be under threat from several dodgy housing developments, but more seriously from a new application to prospect for minerals in the Verlorenvlei, the very river that runs into the sea right where the hallowed wave of Elands Bay ends. They’re planning on mining for tungsten, the stuff in your old lightbulbs and toasters that heats up when electricity is passed through it. Mining for tungsten is a pretty brutal affair, and it causes large scale pollution of the waters surrounding the mining operation. In fact, Bongani Minerals, who have applied for the prospecting rights, have already tried to get mining rights on a farm in the Moutonshoek Valley. However, the application was withdrawn after an assessment indicated that the toxicity of the processed tungsten would have a negative impact on the vlei, the point and in turn the tourism industry.

However the new application to the Department of Minerals and Energy opens the way for mining rights to be granted within 5 years. But this threat is bigger than just the potential ruin of a world class lefthand pointbreak. According to the Verlorensvlei Coalition:
“The rains which fall on the Piketberg feed the Krom Antonies River which has sustained farming in the fertile Moutonshoek Valley for 300 years. The Piket-bo-berg and the valley produce export fruit, nuts, olives, potatoes, proteas and world class horses and provide work and a livelihood for hundreds of local people. The Krom Antonies River feeds the Verloren River which runs past Redelinghuys on its way to the sea. This water constitutes 60% by volume of that received by the Verlorenvlei which forms an estuary at Elands Bay and functions as a nursery for the local fishing and crayfishing industries.
“The quality and flow of water reaching the Verlorenvlei and thus the sea is at high risk of contamination by tungsten which becomes unstable during the mining process and has a strong affiliation for water. The fledgling tourist industry in the district, based on burgeoning guest houses, nature reserves and the famous left hand break at Elands Bay, may cease to exist.”

If building a new nuclear power station near a built up area and world surfing heritage site is stupid, then mining the Verlorenvlei for tungsten is suicide. Scratch the surface and both these projects seem to be propelled by destructive, short-term, narrow-minded profit-seeking, instead of truly sustainable human development.

In many ways, a good surfbreak is the most dependable and sustainable pay day. As long as the authorities protect the location and control the development around it, the wave will literally do the rest. Forever. The tourists, local and international will arrive, surf the wave, stay in the accommodation, drink in the bars, eat in the restaurants and spend spend spend. And even though trickle down economics is hardly the best system for addressing our dire social circumstances, surfbreaks offer a reasonable impetus for development in communities that would otherwise remain neglected.

You can object against the Nuclear Power Station at Thuyspunt and learn more about it at thebombsurf.com

And you can object against Bongani Minerals’ application to prospect in the Verlorenvleihere, and learn more about it at Wavescape.co.za

Source http://www.mahala.co.za

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Mine could destroy Elands Bay wetlands.

Oppenheimer scion Mary Slack, whose fortune is built on diamonds and gold, is fighting to save her trophy stud farm in the Western Cape from destruction - at the hands of a mining company.

Slack is part of a coalition of landowners and environmentalists who are trying to block Bongani Minerals from mining tungsten in the Moutonshoek valley, a pastoral idyll of fynbos, orchards and horse paddocks 50km northwest of Piketberg.

"I'm unutterably opposed," she said. "(A mine) will just ruin the whole area. It's just a catastrophe, an environmental catastrophe, and personally it's a catastrophe."

She established her Wilgerbosdrift stud in the valley 10 years ago and has bred legendary horses like Dynasty, horse of the year and Durban July winner in 2003, and Asylum Seeker, the champion two-year-old filly in 2006.

"I should think we have far greater possibilities of earning foreign exchange (from horse exports) than a lousy bit of tungsten," Slack said.

Asked if there was irony in the daughter of Harry Oppenheimer fighting a mining company, Slack quoted the Biblical proverb about visiting the sins of the fathers on their children, and continued: "I fail to see what it has to do with anything. I think there's every reason to oppose it just on environmental grounds. The fact that it would ruin my farm is incidental, really."

Bongani Minerals and its environmental consultants held an "open day" in Piketberg this week to address the concerns of those opposed to their application for a prospecting licence.

Farm owners and workers harangued Bongani directors Johannes van der Walt and Mike Reynolds, saying a mine would generate toxic dust and pollute the valley's water, which flows into the Verlorenvlei on the coast at Elands Bay - an internationally recognised wetland.

Jacqui van der Merwe, who with her husband, Bennie, breeds horses and grows export fruit in the valley, said that among other things a mine would coat their table grapes in tainted dust.

Tungsten was first found in the area in the '70s by Anglo American, but the deposit was not regarded as worth mining.

Van der Walt said only a full prospecting programme and environmental impact study would show if the concerns were well founded: "I think we've put a lot of fears to rest. But the principle still is their lifestyle that they feel they're going to lose. That's just the nature of the business. You can't say a mine is going to make the place prettier. You're going to have a dump there."

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