Mintails reacts to suspension

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Johannesburg - Australian Stock Exchange listed gold mining company Mintails on Monday expressed optimism that it would soon resume full operations at its mine in Kagiso, on the West Rand.

“Mintails will continue to process available stockpiled material as well as tailings as not fall within the suspension notification,” chief financial officer Eddie Milne said in a statement.

Tailings are the refuse or dross remaining after ore has been processed.

“The company takes compliance and its corporate responsibility seriously and is optimistic that it will be able to resume operations with a minimal delay,” said Milne.

On Friday, Mineral Resources Minister Susan Shabangu's office announced the suspension of Mintails' hard rock and open pit operations following a departmental investigation.

Shabangu's office said Mintails had breached sections of the Mineral and Petroleum Resources Development Act and the Mine Health and Safety Act.

Infringements identified allegedly included a lack of warning signs around the pit to prevent unauthorised access, and the proximity of a major power line to a high wall on the pit's eastern side.

Mintails also failed to implement its approved social and labour plan.

There were concerns about the environmental impact of opencast mining near residential areas, and public safety risks such as earth tremors caused by the mine's activities and rocks thrown up from the blast area.

Said Milne: “While the company believes it has been compliant with all relevant regulations, it will continue to work with the Department of Mineral Resources and officials to ensure full compliance...” - Sapa

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