what chance?

Market seems to think MRC Xolobeni has no chance of approval. Anyone with any comments?

Feud over Wild Coast mining flares again
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By Sharda Naidoo
Renewed lobbying by Australian-based mining company Mineral Commodities
to be allowed to mine titanium at Xolobeni on the Wild Coast ran into a
brick wall on Tuesday, with government insisting that a mining project
and ecotourism cannot coexist in the environmentally sensitive area.
The company indicated its optimism about proceeding with the Xolobeni
project by announcing that the results of its own environmental review,
which it said had confirmed the potential for future mining and local ecotourism
activities complementing each other.
But this was rubbished by government officials, who said any attempt
by the company to push its cause was likely to be squashed, especially
since Environmental Affairs and Tourism Minister Valli Moosa planned to
proclaim the Pondoland area as a national park before the end of the year.
There are also proposals to incorporate about 100km of that coastline
and state forests in the region as part of a bigger Eastern Cape conservation
corridor.
If Moosa's plan succeeds, and the Protected Areas Bill is passed in
Parliament this year, Mineral Commodities will have no chance of developing
in the area. A final cabinet decision is expected on the mining project
next month.
It appears the Eastern Cape government's repeated refusal to agree to
the proclamation of the land as a protected area could have given false
hope to the Perth-based company.
The company's CEO, Alan Luscombe, said yesterday: "Our view, which is
strongly endorsed by this study, is that development will in fact enhance
the local ecotourism industry, while bringing many other benefits to the
region."
The Xolobeni deposit is located within the boundaries of the central
Sikombe, Kwanyana and Mnyameni river blocks.
"The prospecting areas are located behind the frontal dunes and it is
clear the coastline, river estuaries, dune forests, waterfalls and other
environmentally significant areas will not be affected by mining," Luscombe
said.
"The highlighted areas do not degrade the scenic and aesthetic value
of the Xolobeni area."
But Moosa's spokeswoman, Phindile Makwakwa, said the mining proposals
indicated "unacceptable levels of environmental impact" and were "incompatible
with ecotourism".
She reiterated Moosa's view that mining would "destroy the beauty and
endemism" of the area.

Business Day
2003/10/22