The Elandsfontein phosphate mine in South Africa, owned by African Rainbow Capital, faces a lawsuit from the WWF regarding environmental offset exemptions rejected by the Environment Minister. The mine risks impacting local ecosystems, particularly the Langebaan Lagoon. Kropz, which owns most of the mine, has proposed land donations but faces delays in operations and legal challenges.
The Elandsfontein phosphate mine in South Africa, valued at $160 million and owned by Patrice Motsepe’s African Rainbow Capital Investments, is facing a new lawsuit initiated by the World Wildlife Fund (WWF). The WWF has filed a suit against South Africa’s Environment Minister, Dion George, regarding his decision to dismiss appeals against an environmental offset exemption for the mine, as reported by Bloomberg.
The Elandsfontein site, known for housing the country’s second-largest phosphate deposit, has encountered ongoing environmental controversies for over ten years. There are significant concerns that mining operations could pose risks to the Langebaan Lagoon, located approximately 61 miles north of Cape Town, and its associated aquifer. Kropz, which owns 90% of the mine, has also been named in the lawsuit.
As part of a proposed offset arrangement, Kropz suggested purchasing and donating over 20,000 acres of land to the West Coast National Park. However, this initiative was rejected by the provincial office of the ministry in 2021. The WWF’s legal action, filed in South Africa’s High Court on March 13, claims that “the environment, and therefore the public at large, has suffered prejudice from the unconscionable delays in the implementation of the offset requirements.”
Kropz has acknowledged the legal proceedings and is currently evaluating its position regarding the lawsuit. Since acquiring the mine in 2010, the company has dealt with various challenges, including technical problems and environmental opposition, which have impeded the mine’s operational start.
In June 2024, Kropz provided an update on the JORC (2012) compliant mineral resource estimate at Elandsfontein, which somewhat reversed a significant decrease in declared ore reserves that occurred from 2018 to 2022, primarily credited to additional infill drilling conducted in 2023. However, despite an increase in declared reserve tonnes and grades, the overall estimate of resource quality has decreased, reflecting a more precise evaluation of the deposit’s quality over time.
Additionally, South African exporters of coal and iron ore have announced intentions to enter into multibillion-rand contracts with Transnet aimed at repairing rail infrastructure and enhancing shipment operations.
In conclusion, the Elandsfontein phosphate mine continues to be embroiled in environmental legal battles, with the World Wildlife Fund filing a lawsuit against the Environment Minister’s decision on the mine’s offset exemption. This ongoing conflict highlights the tensions between mining operations and environmental preservation. Kropz, while addressing these legal challenges, is also attempting to improve the accuracy of its mineral resource estimates amidst significant operational hurdles.
Original Source: www.mining-technology.com
