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ISSN 1747-146X
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THE LEADER VOLUME 11 • NUMBER 8
Mining estates
It is often overlooked that mining companies usually are huge landowners in their own right or are custodians of large land areas through mining leases. Actual extraction and processing usually only takes place on a fraction of the area that they own or have active leases on.
Of course this land may be prospective for brownfield exploration; and to some extent can act as a security barrier, keeping operational areas a long distance from unwanted incursions by trespassers and artisanal miners.
Some groups have attempted to be imaginative with the land under their care, good examples being the land set aside by De Beers in the 36,000 ha Venetia Limpopo Nature Reserve. Another South African example, is Palabora Copper, located directly adjacent to the worldrenowned eco-tourism attraction, the Kruger National Park. It coordinates several onsite wildlife management and cultural heritage programmes as part of its ongoing sustainability drive. The company also collaborates closely with various communities in the Ba-Phalaborwa district to boost economic development and alleviate poverty.
But land is a valuable commodity and miners are not always permitted to sit on vast tracts of unused( or perceived to be unused) territory, whether it is owned or leased. Zimbabwe has recently applied for a court order to force Impala Platinum to sell almost 28,000 ha of its mining lease to the state, which Robert Mugabe wants to use for development of a 600 MW power station. This is an example of complications that can arise from having a mining lease and not owning the land, in this case held under a lease by Zimplats Holdings but owned by Zimbabwe. As it hasn’ t been developed as Implats originally planned, Zimbabwe is arguing that it is excess to requirements and so is seeking compulsory acquisition. In 2009, Zimplats planned to spend $ 6.7 billion over 20 years to produce about 1 Moz of platinum annually but things have not worked out like this, as in 2015, the company produced just 190,000 oz. Zimplats argues that this isn’ t surplus land and that it handed over about a third of its mineral rights to the state a decade ago in exchange for cash and credits toward Zimbabwe’ s indigenisation rules, which require foreign-owned companies to be part owned by local black investors.
Of course on the flip-side, non-state landowners can earn vast sums from miners having operations on their territory. In the northern provinces of Canada, special mining regulations are in place to recognise the rights of indigenous landowners. In northern Quebec, the
Nunavik Inuits own much of the land and Glencore has an agreement with Makivik Corporation, which represents the Inuits, to share 4.5 % of its Raglan nickel mine ' s operating profit to the communities of Salluit( which receives 45 % of this amount) and Kangiqsujuaq( 30 %), and to the Nunavik region( 25 %). But often local communities do not share in mining riches to the extent that they should.
Uncertainty of operational continuity also creates land issues. A world away from Zimbabwe and Arctic Canada, in the UK, Rio Tinto happens to be one of the largest landowners in Scotland as a result of its aluminium smelter operations in Fort William as well as two hydroelectric power stations. The company is now reviewing its operations and the BBC reported recently that a community buyout has been proposed of 120,000 acres in Lochaber owned by the mining group. East Lochaber and Laggan Community Trust has been set up to explore the potential of taking over the land near the Fort William smelter. The buyout project does not include the smelter, but if the plant and land were to be sold together ELLCT would need partners to take over the smelter. The community trust has said the final word on the future of the plant and land rests with the company, but added that it wanted to explore the option of a community buyout of its estates. If the land purchase was to go ahead it would be the largest of its kind in Scotland. To help it look into this idea, the trust is holding a series of public meetings to encourage people to become members of the trust.
All these examples highlight the fact that mines are not just about the pits, shafts, processing plant buildings or associated downstream metallurgical facilities but also the huge areas of land these assets are located on. Usually things are managed well but as mines are increasingly being built in sensitive remote regions, and are increasingly owned by large developing world companies, and located in countries with cash-strapped governments, the importance of sustainable and transparent plans for the associated land areas should continue to be at the forefront of long term mine planning.
Paul Moore Editor paul @ im-mining. com
AUGUST 2016 | International Mining 3