{"id":31116,"date":"2022-05-24T19:07:20","date_gmt":"2022-05-24T19:07:20","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/thungela-grilled-over-toxic-spill-as-criminal-probe-is-launched"},"modified":"2022-05-24T19:30:51","modified_gmt":"2022-05-24T19:30:51","slug":"thungela-grilled-over-toxic-spill-as-criminal-probe-is-launched","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/thungela-grilled-over-toxic-spill-as-criminal-probe-is-launched","title":{"rendered":"Thungela grilled over toxic spill as criminal probe is launched"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>Shareholder activists took aim at Thungela Resources during the coal miner\u2019s very first annual general meeting (AGM), and poked holes in the company\u2019s rehabilitation programme and transparency following a toxic acid mine drainage spill that has prompted a criminal investigation.<\/p>\n

During the company\u2019s inaugural AGM on Tuesday, Just Share, a non-profit shareholder activism organisation, put this and other tough questions to Thungela, ranging from its inclusion and diversity policy to its support for carbon capture and storage.<\/p>\n

Department of Water and Sanitation spokesperson Sputnik Ratau confirmed to Fin24 on Tuesday that there was a criminal case under investigation against Thungela in relation to the spill.<\/p>\n

In a directive issued to Thungela earlier this year, the department said an old mine shaft collapse led to the overflow of acidic water, potentially polluting a nearby water resource and killing fish within the Wilgerivier.<\/p>\n

Addressing the AGM, Thungela CEO July Ndlovu said the company was aware of the criminal probe, but had first learnt of it through the media. “But at this stage, we have not been charged. As and when all these factors come to fruition, we will disclose to the market the status at that point in time,” he said.<\/p>\n

‘Exemplary’ disclosure<\/b><\/p>\n

Ndlovu said the company\u2019s disclosure of the spill had, in fact, been “exemplary”, as Thungela had notified the markets of the event when reporting its 2021 results, even though the spill was a “post-balance-sheet event”.<\/p>\n

“We are working tirelessly with our stakeholders to develop a plan to try to remedy the effects of this incident as best as we can. We have retained the services of scientists to work with our stakeholders so that we can put together a comprehensive remedial action,” he said.<\/p>\n

During Tuesday\u2019s meeting, the nongovernmental organisation (NGO) highlighted that, although Thungela claims to “have comprehensive mine closure and rehabilitation programmes that seek to return previously mined land to its original condition for sustainable use”, numerous media reports over the past few months have documented serious environmental and health impacts from unrehabilitated Thungela mines beyond the spill, as well as fires at Khwezela colliery.<\/p>\n

Illegal mining<\/b><\/p>\n

While Thungela has said illegal miners have been behind these incidents, Just Share said illegal miners “would not have access to these mines, or the opportunity to cause damage, if they had been rehabilitated ‘back to their original condition’ according to the law”.<\/p>\n

Ndlovu said it takes time to rehabilitate mining areas, and that when illegal miners moved in, Thungela worked with law enforcement to stop the illicit mining activity. “And there are many examples in and around our mining areas where we’ve done this responsibly and to best practice,” he added.<\/p>\n

Just Share also questioned Thungela\u2019s support for developing carbon capture and storage (CCS), in South Africa.<\/p>\n

“Despite decades of experimentation, none of the many so-called ‘pilot projects’ in South Africa or anywhere in the world have been successful in the development of commercially viable CCS, at scale,” the NGO said.<\/p>\n

“How can Thungela justify supporting the expenditure of millions of dollars of capital on further CCS experimentation, when the solutions to our energy challenges are clear, and the need to act is urgent, and when the funding being pumped into CCS could be transformational in supporting workers and communities in Mpumalanga as we transition to a low-carbon economy?”<\/p>\n

Red flag<\/b><\/p>\n

Ndlovu said the UN\u2019s Intergovernmental Panel on Climate Change report recognises the need to invest in multiple technologies, including CCS.<\/p>\n

“We believe that, in fact, in South Africa, the need to invest in renewables is urgent and necessary, South Africa is short of energy as we speak. Therefore, that investment is absolutely required,” the Thungela CEO said. “But, equally, we’ve got to continue to do what we need to do to support the communities [whose] livelihoods depend on us. And the markets that have stated clearly that for them to tackle energy poverty, they’ll continue to use coal well into the mid-2040s.”<\/p>\n

Although coal has supposedly fallen out of favour with the investment community, Thungela \u2013 a pure coal play \u2013 boasts some big investing names among its largest shareholders. These include the Vanguard Group, BlackRock Investment Management, Coronation Asset Management and the Public Investment Corporation.<\/p>\n

In a statement released ahead of the AGM, Just Share said “a pure-play thermal coal company which has not reported in alignment with the TCFD [Task Force on Climate-Related Financial Disclosures], which has no science-based climate strategy or emission reduction targets, and which expresses its intention to expand its operations, should be a serious red flag for investors”.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. Shareholder activists took aim at Thungela Resources during the coal miner\u2019s very first annual general meeting (AGM), and poked holes in the company\u2019s rehabilitation programme and transparency following a toxic acid mine drainage spill that has prompted a criminal investigation. During the company\u2019s inaugural AGM on Tuesday, Just Share, a non-profit shareholder […]<\/p>\n","protected":false},"author":84,"featured_media":31115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[274,315,805,1166,2049,2048,764,2046,275,2050,2047],"class_list":["post-31116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-africa-press","tag-africa-press-south-africa","tag-coal","tag-department-of-water-and-sanitation","tag-july-ndlovu","tag-just-share","tag-mining","tag-rehabilitation","tag-south-africa-2","tag-thungela-resources","tag-toxic-spill"],"yoast_head":"\nThungela grilled over toxic spill as criminal probe is launched - South Africa<\/title>\n<meta name=\"description\" content=\"Shareholder activists took aim at Thungela Resources during the coal miner\u2019s very 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