JSE-listed anthracite coal mining company Buffalo Coal Corp has been granted an application for urgent relief, setting aside a Department of Mineral Resources (DMR) decision taken in August to withdraw its Kwa-Zulu Natal Aviemore anthracite mine’s mining licence.
The DMR’s decision to withdraw its Mining Right 301 was due to “procedural issues” in respect of the award process.
Further to this the minister had also withdrawn the approval by the regional manager of the environmental management plan in respect of that right.
Following Buffalo’s application for urgent relief, which was heard on September 15, 2015, a South African court has granted an order that, pending the final determination of the application for the review and setting aside of the ministerial decision, the court granted an order stipulating that the ministerial decision is of no force or effect; the Minister is interdicted from awarding the mining right (MR301) to any other party; and that Buffalo may continue to mine in terms of MR301.
Buffalo now has 30 days within which to launch the review application to obtain final relief in the form of an order setting aside the ministerial decision.
The company said that its legal team, including senior counsel, has indicated a strong likelihood of the review application being successful.
Mining Right 301 was granted in June 2013 to Leeuw Mining and Exploration which Buffalo acquired through Zinoju Coal.