JSE-listed anthracite coal mining company Buffalo Coal Corp has stopped mining at its Aviemore mine in Kwa-Zulu Natal following the DMR’s decision to withdraw its Mining Right 301 – due to “procedural issues” in respect of the award process.
Further to this the minister has also withdrawn the approval by the regional manager of the environmental management plan (EMP) in respect of that right.
Buffalo’s attorneys are moving to obtain an urgent interdict to ensure the right is not awarded to another company while pursuing the option to re-start mining.
Mining Right 301 was granted in June 2013 to Leeuw Mining and Exploration which Buffalo acquired through Zinoju Coal.
The procedural issues are in relation to an objection received from Avemore Trust (in October 2013) against the awarding of the right.
Buffalo intends to apply to court for a review of the minister’s decision to withdraw the grant of the mining right and the approval of the EMP.
The urgent application is expected to be heard during the course of the week commencing on 31 August 2015.
Pending the outcome of the urgent application, mining operations in the Mining Right 301 area have been relocated to an adjacent mining right area and the company has sufficient stock on hand to service customers in the short term.
Buffalo is a coal producer in southern Africa. It holds a majority interest in two operating mines through its 100% interest in Buffalo Coal Dundee, a South African company which has a 70% interest in Zinoju Coal. Zinoju holds a 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine.