Despite the strong presence of illegal mining in the West Rand, mining company Pan African Resources plans to take over some of the old mining dumps in the area and turn them into cash.
The company launched a mining and rehabilitation development for the West Rand District in Krugersdorp and Kagiso.
The project, the Mogale Tailings Retreatment is worth about R2.5 billion is expected to produce 50 000 ounces of gold per year over a 20-year period.
Pan African Resources has acknowledged that the presence of illegal mining or so-called Zama-Zamas is a reality in the West Rand but the company says it won’t tolerate any illegal activities.
It intends to spend R400 million to rehabilitate the plant and the land in the surrounding area.
The mine is located in an area that is frequently marked by social disorder.
In July 2022, the area was in the news following the gang rape of eight women allegedly by illegal miners.
The company says it is confident the about the viability of the project.
CEO of Pan African Resources, Cobus Loots says, “The project has a lot of legacy issues. These dumps have been around for many years and a lot of them were mined over a 100 years ago and a mintail site currently is a rehabilitation nightmare to fair but yes, we saw a challenge and difficulty. It’s a very large gold resource and reserve for that matter, about 2 million ounces sitting on surface and yes, we’ve done the work. We’ve done the studies to demonstrate site currently is a rehabilitation nightmare to fair but yes, we saw a challenge and difficulty. It’s a very large gold resource and reserve for that matter, about 2 million ounces sitting on surface and yes, we’ve done the work. We’ve done the studies to demonstrate the project will work and be sustainable or profitable.”
The company acquired the mining area for R50 million from Mintails Mining which was placed in provisional liquidation in 2018. It says it has compiled with all the environmental regulations needed to start a mine of this nature. Pan Africa Resources has an extensive experience in tackling mines that are difficult to operate.
Loots adds, “In taking on this project we are assuming very large environmental liability be we’ve undertaken a number of studies and experts and independent experts for that matter have done studies to demonstrate over the life of our project. We actually will be cleaning up the environment. So, we’ll be rehabilitating land, we’ll be depositing those old tailings on new modern facilities that are complaint with all the regulations.”
The construction of the plant is expected to begin immediately with the mine likely to start operating by December next year.
Between 400 and 500 jobs will be created by the new mine.
