OPEN LETTER - ANGLO AMERICAN’S PLANS TO SHED COAL ASSETS IN SOUTH AFRICA
Summary
The Centre for Environmental Rights (CER) has issued an open letter to Anglo American following the company's February 2016 announcement to sell its South African coal and iron ore assets. The CER warns against a trend where large mining firms sell assets with significant environmental liabilities to smaller companies that subsequently go insolvent, leaving the state and public to bear the cost of rehabilitation. Citing cases like Harmony Gold and DRDGold, the CER argues that the transfer of mining rights constitutes administrative action requiring public participation under the Promotion of Administrative Justice Act 3 of 2000 (PAJA). The letter demands that Anglo American publicly disclose its intended transfers, Environmental Management Programmes, and financial provisions for rehabilitation to avoid adding to the 6,000 derelict and ownerless mines already existing in South Africa.
Key insights
- There is a recurring pattern in South Africa where large mining companies sell mines with substantial environmental liabilities to smaller firms that go bankrupt before rehabilitation is completed, allowing the original profitable owner to avoid liability.
- The CER identifies specific instances of failed environmental accountability following asset sales, including Harmony Gold's sale in the North West to Pamodzi Gold Orkney and DRDGold's sale of the Blyvooruitzicht mine to Village Main Reef.
- Under the Promotion of Administrative Justice Act 3 of 2000 (PAJA), the transfer of mining rights requires public participation because the Minister of Mineral Resources' consent constitutes administrative action, though this is historically under-enforced.
- South Africa currently faces a legacy problem of 6,000 derelict and ownerless mines, which results in significant annual costs for taxpayers.
Cite the original document
- APA
- Centre for Environmental Rights (2016). OPEN LETTER - ANGLO AMERICAN’S PLANS TO SHED COAL ASSETS IN SOUTH AFRICA. https://cer.org.za/wp-content/uploads/2016/03/CER-Letter-to-Anglo-American-PLC-29-Feb-2016.pdf?x21779
- Chicago
- Centre for Environmental Rights. OPEN LETTER - ANGLO AMERICAN’S PLANS TO SHED COAL ASSETS IN SOUTH AFRICA. 2016. https://cer.org.za/wp-content/uploads/2016/03/CER-Letter-to-Anglo-American-PLC-29-Feb-2016.pdf?x21779.
- Wikipedia
- {{cite press release |author=Centre for Environmental Rights |title=OPEN LETTER - ANGLO AMERICAN’S PLANS TO SHED COAL ASSETS IN SOUTH AFRICA |date=29 February 2016 |url=https://cer.org.za/wp-content/uploads/2016/03/CER-Letter-to-Anglo-American-PLC-29-Feb-2016.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{centreforenvironmentalrights2016open, author = {{Centre for Environmental Rights}}, title = {{OPEN LETTER - ANGLO AMERICAN’S PLANS TO SHED COAL ASSETS IN SOUTH AFRICA}}, publisher = {Centre for Environmental Rights}, year = {2016}, month = feb, url = {https://cer.org.za/wp-content/uploads/2016/03/CER-Letter-to-Anglo-American-PLC-29-Feb-2016.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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