Shares in Renergen, the owner of South Africa’s only helium and liquid natural gas production facility, in Virginia, Free State, rose nearly 7% in afternoon trade after it clarified environmental approvals.
It said at the company’s recent annual general meeting (AGM), which was attended by representatives from the Centre for Environmental Rights (CER) posed questions in relation to the Phase 2 expansion and environmental authorisation.
Renergen wanted to make clear the company’s position on the matter just as it did at the AGM.
The company’s positive Phase 2 Environmental Authorisation (EA) was appealed by CER on behalf of the Mining and Environmental Justice Community Network of South Africa and Mining Affected Communities United in Action. But the Department of Mineral Resources and Energy (DMRE) minister had dismissed five of their seven grounds of appeal.
Renergen said their appeal has not resulted in any delays to the progress on Phase 2, nor was it likely to have any impact on the timing of Phase 2. “This is due to the fact that our select drilling programme is fully authorised under the Production Right granted in 2012,” it said.
On the advice of the minster’s supporting technical advisory team, the minster had requested that Tetra4 expand on the impact assessment reports to address areas for improvement observed in the report, and in relation to the first and second grounds of appeal.
Renergen said once the additional information had been incorporated, a revised report was to be submitted to registered Interested and affected parties for a further review and commenting period of 30 days, and thereafter re-submitted to the DMRE for approval.
“We are pleased with the progress and believe that the remaining information to be provided will satisfy the requirements to obtain a positive EA (environmental authorisation),” it said.
Last week Renergen announced its liquid helium production line was fully operational.
The share price was up 6.87% at R12.13 in late afternoon trade yesterday.
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