The Elandsfontein phosphate mine, owned by Patrice Motsepe’s African Rainbow Capital, faces a lawsuit from the WWF challenging an environmental offset exemption. The mine, an environmental controversy for over a decade, threatened local ecosystems. Recent updates indicate a reversal in ore reserves, though quality estimates have declined, reflecting ongoing scrutiny in the mining sector.
The Elandsfontein phosphate mine, a $160 million South African project owned by Patrice Motsepe’s African Rainbow Capital Investments, is facing legal challenges from the World Wildlife Fund (WWF). The WWF has brought a lawsuit against South Africa’s Environment Minister, Dion George, regarding his decision to dismiss appeals concerning an exemption for environmental offsets related to the mine’s operations, as reported by Bloomberg.
Situated near Cape Town, the Elandsfontein mine holds South Africa’s second-largest phosphate deposit. The project has a troubled history, having been embroiled in environmental controversies for over a decade, raising concerns about its potential impact on the nearby Langebaan Lagoon and its water sources. Kropz, which is 90% owned by African Rainbow and operates the mine, is also a defendant in this case.
The company had previously proposed to purchase and donate over 20,000 acres to the West Coast National Park as part of a compensatory measure. However, this proposal was invalidated by the provincial ministry’s office in 2021. In a legal filing made on March 13, the WWF argued that delays in implementing offset requirements have harmed the environment and the public interest.
Kropz has acknowledged these developments and is currently reviewing its options. The company, which acquired the mine in 2010, has experienced various challenges, including technical difficulties and opposition from environmental groups that have postponed the mine’s operations.
As of June 2024, Kropz has revised its JORC (2012) compliant mineral resource estimate for the Elandsfontein project. This update has partially reversed a significant write-down in ore reserves recorded between 2018 and 2022 due to additional drilling completed in 2023. However, the overall grade and tonnage estimate reflects a decline, indicating a more realistic assessment of the deposit’s quality over time.
In related news, South African coal and iron ore exporters have announced plans for multibillion-rand agreements with Transnet to enhance rail infrastructure and increase shipments.
The ongoing legal dispute surrounding the Elandsfontein phosphate mine underscores significant environmental concerns and the importance of compliance with offset requirements. As the WWF challenges the Environment Minister’s decisions, Kropz’s future actions will be critical in determining the mine’s impact on local ecosystems. Moreover, the reassessment of mineral resources highlights the dynamic nature of mining operations amidst environmental scrutiny.
Original Source: www.mining-technology.com
