The Elandsfontein phosphate mine, owned by African Rainbow Capital, faces a lawsuit from the WWF over environmental concerns. The mine has been disputed for over a decade, primarily regarding its impact on the Langebaan Lagoon. Kropz, the mine’s owner, acknowledges the challenges and is reassessing its legal strategy amid setbacks.
The Elandsfontein phosphate mine, a $160 million project in South Africa owned by billionaire Patrice Motsepe’s African Rainbow Capital Investments, is facing a lawsuit from the World Wildlife Fund (WWF). This suit challenges Environment Minister Dion George’s decision to reject appeals regarding the mine’s environmental offset exemption, as reported by Bloomberg.
This mine is located near South Africa’s second-largest phosphate deposit and has faced ongoing environmental disputes for over ten years. Concerns focus on its potential impact on the Langebaan Lagoon, located approximately 61 miles north of Cape Town, and its underlying aquifer. Kropz, the company that owns 90% of the mine, is also implicated in the lawsuit.
The proposal for an offset arrangement included Kropz’s commitment to donate over 20,000 acres to the West Coast National Park, which was dismissed by the provincial ministry in 2021. In a legal filing submitted to South Africa’s High Court on March 13, the WWF cited severe delays in implementing offset requirements, stating, “the environment, and therefore the public at large, has suffered prejudice from the unconscionable delays.”
Kropz has acknowledged the lawsuit and is currently evaluating its legal stance. Since acquiring the mine in 2010, the company has encountered various challenges, including technical difficulties and strong opposition from environmental groups, which have postponed mining operations.
Most recently, Kropz issued an update to the JORC (2012) compliant mineral resource estimate for the Elandsfontein mine in June 2024. This update addressed a significant decline in declared ore reserves from 2018 to 2022, revealing improved estimates due to additional infill drilling completed in 2023. However, despite an increase in declared reserve tonnes, the overall resource estimate reflects a decline in quality over time.
Additionally, South African coal and iron ore exporters have recently announced plans for multibillion-rand agreements with Transnet aimed at improving rail infrastructure and increasing shipment volumes.
The Elandsfontein phosphate mine, embroiled in legal and environmental issues, faces a lawsuit from the WWF challenging a key exemption that concerns its environmental impact. The mine’s future is uncertain as Kropz evaluates its position amidst ongoing setbacks and legal disputes. Recent updates indicate an improved mineral resource estimation, although there are concerns over declining deposit quality.
Original Source: www.mining-technology.com
