Community halts R17bn Platreef mining project

Disgruntled community members have slammed Ivanhoe Mines, owners of the R17 billion Platreef project in Mokopane, for breaking environmental laws and promises. Subsequently, resources minister Ngoako Ramatlhodi, requested a meeting with Ivanhoe Mines executive chairman, Robert Friedland, to resolve issues relating to the government’s approval for the Platreef platinum project.
To add fuel to the fire, Ivanhoe Mines’ South African Unit, known as Ivanplats, has begun a process to cut 325 jobs as it is waiting for government to give the go-ahead to start construction of the mine. Reports are that more than 210 employees and 113 contractors in Mokopane has been on standby (on full wages) since June while waiting for the department of mineral resources to notarise its mining license (mining rights was granted on May 30, but full legal permission to the company to start production has been held back until certain conditions are met). Ivanplats has denied allegations that it is using the threat of retrenchments to blackmail government.
The planned mine is expected to be among the biggest in the world and will have a lifespan of 100 years. It will sit alongside Anglo American Platinum’s Mogalakwena outside Mokopane.
Business Day reports that NUM regional secretary, William Mabapa, thinks any problems the mine has with the communities could be easily resolved and retrenchments averted.
Lawyers for Human Rights, acting on behalf of the Mokopane Interested and Affected Communities Committee (MIACC), accuses Ivanplats of having shown scant regard for the effect its operations would have on air and water pollution as well as the ecology, raising fears of possible acid mine drainage. MIACC also argued that the rehabilitation plan, for which only R39 million has been provided, is insufficient.
Ivanplats announced a 26% BBBEE transaction in September, which it says will deliver maximum benefits to the communities in one of the poorest areas in Limpopo. The deal gives the local community 20% shareholding, while 3% goes to local entrepreneurs and the remaining 3% will go to non-managerial staff. Community members still feel that they were not adequately consulted. Ivanplats says it has adequately consulted the community. It held more than 150 meetings over 18 months to inform the community of the BEE deal (reported by Bloomberg News in an emailed interview with Ivanplats).
Government has cited 26 November as the date on which execution of the mining right will be granted should all issues be resolved. Should everything go according to plan, Platreef has stated that it would rely on businesses in Mokopane.