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The Democratic Alliance (DA) is concerned over the application by a state owned company, African Exploration Mining and Finance Corporation (Pty) Ltd (AEMFC), for prospecting rights on prominent farms in the Stellenbosch and Durbanville area. Exploration and other mining activities should not be the function of a state owned company and could lead to damaging financial consequences, especially in times of a recession or slow economic growth, as was recently experienced.

Applications for prospecting rights have to be submitted to the Department of Mineral Resources (DMR) with applicants not having access to information held by the state whilst relying on their own ability and knowledge to have applications approved. They are not, nor should they, be in a position to exert any influence on the awarding of prospecting rights nor do they have access to information held by the State.

Applications by AEMFC on behalf of the State obfuscate the role exercised between the state as an applicant and the state acting as the custodian of the mineral rights in terms of the relevant mining legislation.

In the current position devised by government, the state as majority shareholder of AEMFC, has applied for the granting of a prospecting right whilst also serving as the required authority in the awarding of those same prospecting rights. This position is clearly untenable as it simultaneously acts as both player and referee in the proposed mineral regime being implemented by government. The situation constitutes further evidence of why it is a bad idea for mines to be nationalised. This further underscores the need for SOEs of this nature to be privatised immediately!

Prominent farms such as Hooggelegen, De Grendel, Langverwacht, Haasendal, and Rosendal, known for its excellent farming potential, have been subjected to applications for the prospecting of minerals such as Tin, Zinc, Lead, Lithium, Copper, Manganese and Silver Ore.

Whilst GCS (Pty) Ltd has been appointed by AEMFC as independent environmental consultants to conduct the public participation phase, as well as the compilation of the Environmental Management Plan (EMP) for the application, the obfuscation of the distinction between the state as applicant and the state as the authority with the necessary authority to award the rights remains, and should be avoided.

A meeting will be held at Zevenwacht on Saturday to inform the public in the area about the issue.

My colleague Denise Robinson MP can confirm that the DA will be holding a public meeting in the Durbanville Town Hall on this matter next Wednesday evening, at 19h00. Experts in the field will be speaking to inform the public and to raise awareness of the problems associated with the state mining house's application. We will be mobilising the community. The Durbanville Heritage Society, the Durbanville Community Forum and the Durbanville and Philadelphia Landbouverening, as well as other groups, will be invited to give their views and assist in lobbying against this high-handed action.

Our rural heritage, the wine industry and the jobs and tourism that result from this activity must not be allowed to be desecrated.

The Democratic Alliance calls on government to reconsider its legally questionable dealing in using the state owned AEMFC by actively partaking in mineral exploration and extraction and should therefore be withdrawn, avoiding foreseen legal challenges disputing the legality and fairness of state owned companies such as AEMFC partaking in exploration and other mining activities.