Transworld Energy and Mineral Resources Remove Smelter from EIA Process!!

Letter to Xolobeni IAPs re Revised Scoping - September 2007 Final

The most significant change in the Revised Environmental Scoping Report is therefore the exclusion of the smelter from the Xolobeni Heavy Mineral Sands Project. This implies that the smelter will no longer be considered as part of the project and will also not be assessed in the Environmental Impact Assessment.

The Xolobeni Mineral Sands project is situated approximately 250 km south west of Durban and approximately 60 km south east of Mbizana and 30 km south of Port Edward in the Eastern Cape Province. The prospecting activities undertaken by TEM have indicated the feasibility of mining heavy minerals in the area. In accordance with the requirements of the Mineral and Petroleum Resources Development Act (MPRDA) and the regulations promulgated under Section 24 of the National Environmental Management Act (Act 107 of 1998) (NEMA), an Environmental Scoping Report was compiled and submitted to the Department of Minerals and Energy (DME) on 
25 May 2007.

As a result of comments from the DME and relevant Environmental Authorities, a Revised Environmental Scoping Report was compiled and submitted to the DME during September 2007.

It was previously indicated by the applicant (Transworld Energy and Mineral Resources (TEM)) that a Bankable Feasibility Study (BFS) for the Mineral Separation Plant (MSP) and smelter would only be undertaken once they have been granted a mining right for the area. As the technical design would only be addressed during the BFS sufficient information would not have been available to include the MSP and smelter in the current EIA process. Therefore a separate EIA under NEMA was proposed at the time. The DME indicated that the smelter should be included as part of the existing process to avoid the situation where the establishment of the mine is used as motivation for establishing the smelter irrespective of the potential environmental impacts associated with such step. However, TEM have indicated in the interim that they the project would be feasible without constructing the MSP and smelter and have decided to only construct a Wet Separation Plant (WSP).

The most significant change in the Revised Environmental Scoping Report is therefore the exclusion of the smelter from the Xolobeni Heavy Mineral Sands Project. This implies that the smelter will no longer be considered as part of the project and will also not be assessed in the Environmental Impact Assessment.

Should you wish to obtain a copy of the Revised Environmental Scoping Report, please contact us in this regard.
CONTACT PERSONS: Trudy Goliath
Tel: +27-11 807 5478
Fax: +27-11 803 5745
Email:xolobeni@gcs-sa.biz
Postal Address: P O Box 2597, Rivonia, 2128

Regards,

Nanette Hattingh
Environmental Unit Manager

63 Wessel Road Woodmead
PO Box 2597, Rivonia 2128
South Africa
Tel: +27 (0)11 803 5726
Fax: +27 (0)11 803 5745
jhb@gcs-sa.biz"