Business Report

Gwede Mantashe to review inquest judgment on Lily Mine tragedy

Mayibongwe Maqhina|Published

Scenes from a video provided by the mine showing the extent of the damage and rescue operation under way at Vantage Goldfields' Lily Mine in Barberton.

Image: Screengabs / Vantage Goldfields Mine

Minerals and Petroleum Minister Gwede Mantashe said the department is launching a review application to the inquest judgment into the deaths of three miners at the Lily Mine near Barberton, Mpumalanga.

Mantashe disclosed this to ActionSA parliamentary leader Athol Trollip when he asked his reasons for not suspending or cancelling the mining right at the mine following the findings of the 2023 inquest judgment that illegal mining activities went uncurbed for years in the area.

He said law enforcement operations were under way to address and put an end to illegal mining activities in and around Barberton.

“The department has also initiated a process to take the inquest judgment under review. This decision is informed by the fact that no illegal mining activities had previously been reported to the Department of Mineral and Petroleum Resources, as alleged in the judgment,” he said.

In 2023, the Mbombela Magistrate’s Court found that the mine owners failed to conduct proper risk assessments as required by the Mine Health and Safety Act when the mine collapsed and killed three mineworkers – Solomon Nyirenda, Pretty Nkambule, and Yvonne Mnisi.

The bodies of the mineworkers have not been retrieved as they remain buried underground.

Mantashe said based on the layout of the underground workings, there was no evidence to suggest that illegal mining activities could have contributed to the collapse of the about 30-metre-high crown pillar.

“During the Mine Health and Safety Act inquiry, the employer also conceded that the pillar was not accessible due to its height and the design of the mining layout. It should further be noted that the department does not have direct jurisdiction over illegal mining activities, as these constitute criminal acts that fall within the mandate of law enforcement agencies.”

He added that the interest of the department is to see the mine operational so that the remains of the mineworkers can be retrieved.

Mantashe further said the suspension or cancellation of the mining right was not the first option in the matter.

“The department is continuously engaging with the business rescue practitioners (BRPs) to impress upon them the need to ensure progress.”

Early this year,  ActionSA raised the alarm over illegal mining at Lily Mine and demanded action from Mantashe and Acting Police Minister Firoz Cachalia after the deaths of two illegal miners.

Mantashe confirmed that the department was aware that the inquest judgment found the mine management, the police, and his department negligent and recommended prosecution of the CEO, Chief Operating Officer, and mine management, as they bore responsibility for safety at the mine.

“The department imposed an administrative fine on the employer for contravening the provisions of the Mine Health and Safety Act, 1996 (Act No. 29 of 1996), as amended.”

The minister stated that the department has not committed funding towards the retrieval of the bodies at the mine site because it is currently under a business rescue process, and the matter has also been the subject of various court proceedings.

“These processes must be taken into account in relation to any decisions concerning funding or the implementation of recovery operations at the site.” 

He defended the approval of the transfer of the mine to new owners, Vantage Goldfields SA.

Trollip claimed that there have been concerns that the company has not demonstrated sufficient financial backing, transformation compliance, and a credible operational plan, while other applicants with financial and technical capacity have reportedly waited longer than 12 months for approvals.

Mantashe said his department was unaware of other applicants that had waited over 12 months for approvals.

“In a business rescue situation, reliance is also placed on confirmations from the business rescue practitioners, documentation provided by the company, as well as the business rescue practitioners.”

Mantashe added that his department continued to engage with the business rescue practitioner to receive updates on the progress of the business rescue process.

“The evaluation of potential investors or companies that may fund the reopening of the mine is undertaken by the business rescue practitioners as part of the business rescue process.

“The department will continue to engage with the business rescue practitioners and receive regular feedback to ensure that the process proceeds in accordance with the applicable legal and regulatory framework.”

mayibongwe.maqhina@inl.co.za