Newcastle Coal Project: Revised EIA Highlights Economic Gains and Environmental Trade-Offs

The prospect of coal mining in Newcastle has sparked intense debate among residents, yet Minetek Resources’ Newcastle Coal Project presses forward with measured progress.

This follows the release of the revised final Environmental Impact Assessment (EIA) Report by Cabanga Environmental on Monday, 7 April 2024.

The report integrates all comments received to date about the project, along with responses from the Environmental Assessment Practitioner (EAP). It has also been formally submitted to the Department of Mineral Resources and Energy (DMRE) for evaluation.

The Newcastle Coal Project covers a prospecting right for coal across various farms west of Newcastle, totaling approximately 3,250 hectares. Building on promising prospecting results, Minetek Resources now seeks to convert its prospecting right into a mining right under the Mineral and Petroleum Resources Development Act, 2002 (Act No 28 of 2002) (MPRDA).

Moreover, Cabanga Environmental, a consultancy focused on the mineral and energy sectors, explains that the project area contains coal suitable for open-pit mining in the eastern section and deeper coal in the western section, potentially viable for future underground mining. “Further studies on the underground portion of the Project are required, and any authorisations issued in terms of the Project will need to be amended before the underground can commence,” the consultancy states in its report.

Given this, the EIA centres on the eastern portion, where surface mining is planned. The proposed activities involve open-pit mining across up to seven pits using standard rollover methods.

“Maximum topsoil will be stripped and stockpiled for use in concurrent rehabilitation. Thereafter the sub-soil and overburden will be removed and stockpiled (blasting will be required). Finally, the coal will be extracted, crushed, screened and sorted on site (in-pit mobile crushing and screening plant is proposed, no coal wash plant is planned). Product coal will be transported off-site for further processing through toll-washing (where necessary) or directly to market,” the consultancy details.

It adds that the coal will supply both export and domestic markets, depending on the capabilities of different seams. Once the deepest coal is extracted, each pit will be backfilled in sequence—carbonaceous material compacted at the bottom, followed by hard overburden, subsoil, and topsoil—before revegetation restores the area.

Supporting infrastructure will include roads, conveyors, pipelines, berms, and channels to separate clean and dirty water, as well as Pollution Control Dams to contain dirty water.

The site will also feature security and access control systems, including fences, booms, a weighbridge, and a control room, alongside a workshop area with a wash bay, stores, and diesel bund. Containerised offices, a change house, and a laundry will complete the setup.

In its report to stakeholders, Cabanga Environmental states, “The Project involves the undertaking of Listed Activities identified in the Environmental Impact Assessment (EIA) Regulations, 2014 (as amended) and as such requires an Environmental Authorisation in terms of the National Environmental Management Act, 1998 (Act 107 of 1998) (NEMA) before being undertaken. Further, overburden stockpiles meet the legal definition of ‘waste’ as per the National Environmental Management Waste Act, 2008 (Act No. 59 of 2008) (NEMWA) and will require a Waste Management License, despite being an invaluable input material to the rehabilitation process. A Scoping and Environmental Impact Assessment (EIA) Process is relevant to the Application. The DMRE is the competent authority in respect of the applications.”

The project also requires a Water Use License (WUL) under the National Water Act, 1998 (Act 36 of 1998) (NWA). The Department of Water and Sanitation (DWS) oversees this application, which is already underway.

With Newcastle residents voicing strong concerns over the mine’s potential effects on the town, Cabanga Environmental observes that the site currently supports agriculture, including crops and grazing. “The D96 traverses the site, leading to the Vulintaba Country Estate further west. Residential, recreation and tourism-related land uses are encountered on site and in the immediate surroundings, including the Grey Goose Game lodge and Thorn Hill Country Estate from where the project site is clearly visible,” the consultancy reports.

Wetlands and watercourses on the site generally flow eastward toward Newcastle. “The southern portions of the site are dominated by topographic highs where critical biodiversity areas and protected area expansion potential have been identified in provincial planning frameworks. 45 Heritage/archaeological sites were identified on the site, consisting of various graves and built structures older than 60-years. The built structures are not of particular heritage significance but are still generally protected and will require permits for destruction. All the graves are of high significance and some of these will be directly affected by the proposed project, necessitating their relocation prior to development of these footprints (Pit D1, a portion of Pit2, Pit 6),” the consultancy explains.

Furthermore, the proposed infrastructure and activities will affect or lie close to some residences.

“Persons within the blast radius (500m) will have to be relocated, through a formal resettlement process. Resettlement and grave relocation are dealt with by the appropriate specialists and falls outside of the scope of this EIA,” the company notes in its latest report.

These environmental sensitivities emerged from consultations with interested and affected parties (I&APs), landowners, occupants, authorities, desktop data, and specialist assessments. Cabanga Environmental stresses that the project layout has adapted to these findings, positioning elements to avoid sensitive areas where feasible. “Valid recommendations of the specialist reports have been considered and implemented in the Project design (with specific reference to exclusion of wetlands and their regulated zones and exclusion of the rocky habitat from the project layout),” the consultancy confirms.

The report recognises the site’s environmental and social sensitivities, evaluating acceptable change based on the resilience of affected areas. Socio-economic analysis suggests the project will significantly enhance production, business sales, GDP, tax revenue, and job creation.

After mitigation, Cabanga Environmental identifies these “High negative” impacts: 

·         Physical alteration of pre-existing geology by excavation and mining.

·         Operational phase mine dewatering lowering the regional groundwater levels.

·         Poor-quality leachate decanting from backfilled opencasts post-closure.

·         Increased visual contrast, visual intrusion of the project elements and activities, from vantage points where the Project will be visible (KOP2 (On the R34 ~ 3km west of the site), KOP3 (D96, at farm worker’s houses ~1km west of the site), KOP7 (along Nagtegaal Street ~3.5km north-east of the site), KOP8 (Grey Goose Game Lodge) and KOP12 (On Panorama Drive ~1.7km south-east of the site). The project will also be visible from Thorn Hill Country Estate.

Mining will permanently alter the site’s geology, an unavoidable outcome if approved, the consultancy notes. Dewatering during operations will lower regional groundwater levels, with the Geohydrological Impact Assessment estimating a 20% loss of baseflow to local water resources, though no private boreholes are expected to be impacted.

“It may be effective to intercept groundwater through the establishment of dewatering wells, prior to the groundwater reporting to the excavation. As the intercepted groundwater would not have come into contact with any coal mining activity, it will be regarded as clean water and can report directly to the surrounding clean environment. This would likely reduce the volumes of water that needs to be pumped from the pits and reduce the effect that dewatering could have on baseflow. The exact location of such dewatering infrastructure can only be determined during the operational phase of mining, once preferential flow paths on the site are more thoroughly understood,” Cabanga Environmental explains.

Once mining ends and dewatering ceases, groundwater levels should recover.

“This is expected to lead to an outward spread of the pollution plume and decant of potentially poor quality water. It is expected that, post-closure (per pit) water will need to be intercepted (captured) and treated prior to release into the surrounding environment. Operational monitoring data of groundwater levels and quality should be used to inform the detailed water capture and treatment strategies that would be appropriate,” the report states.

A comprehensive Environmental Management Programme (EMPr) provides detailed instructions for the applicant and contractors across all project phases to limit impacts. Additional monitoring, pre-construction walk-downs, and design measures aim to further reduce effects. Key mitigation strategies in the EMPr address identified impacts, acknowledging that some, like visual changes, are inherent to coal mining and must be weighed against economic benefits. Impacts unavoidable during operations will require concurrent and final rehabilitation.

As per the company, Cabanga Environmental conducted a thorough public participation process per NEMA EIA Regulations, 2014, and DEA guidelines. “The EIA Report and its supporting appendices were made available for a public comment period after which the comments received have been addressed in the Comment and Response Table (Appendix F 1), and the Reports updated based on comments received,” the consultancy confirms.

Submitted to the DMRE on 1 December 2023, the EIA and EMPr were revised after a 25 March 2024 request for more information. The updated report opened for public comment from 4 November 2024 to 5 March 2025, extended to 100 days at I&APs’ request, before final submission to the DMRE.

Concluding, the Newcastle Coal Project, while advancing with Minetek Resources’ pursuit of a mining right, underscores a complex balance between economic potential and environmental responsibility. The revised EIA from Cabanga Environmental reveals significant geological, hydrological, and visual impacts, alongside socio-economic benefits like job creation and GDP growth.

For Newcastle residents, this means weighing tangible gains against permanent landscape changes, potential water quality issues, and community relocations—issues the DMRE must now adjudicate amid ongoing public scrutiny.

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