The Elandsfontein phosphate mine, a $160m (R2.89bn) South African phosphate project owned by billionaire Patrice Motsepe’s African Rainbow Capital Investments, is contending with a new legal challenge from the World Wildlife Fund (WWF).
The WWF has sued South Africa’s Environment Minister, Dion George, over his decision to reject appeals against an environmental offset exemption for the mine, Bloomberg reported.
The Elandsfontein mine, home to South Africa’s second-largest phosphate deposit, has been mired in environmental disputes for more than a decade, with concerns that its operations could threaten the Langebaan Lagoon, situated 61 miles north of Cape Town, and its aquifer.
Kropz, which is 90% owned by African Rainbow and owns the Elandsfontein mine, was also named as a respondent.
The company had proposed to purchase and donate more than 20,000 acres of land to the West Coast National Park as part of the offset arrangement. This proposal was invalidated by the provincial office of the ministry in 2021.
In the legal filing with South Africa’s High Court on 13 March, the WWF argued 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 recent developments and stated that it is assessing its position.
The company, which acquired the mine in 2010, has faced numerous setbacks including technical issues and environmental opposition, delaying the mine’s commencement.
In June 2024, Kropz updated the JORC (2012) compliant mineral resource estimate at the Elandsfontein project.
The update partially reversed the significant write-down in declared ore reserves from 2018 to 2022, primarily due to additional infill drilling completed in 2023.
Although the declared reserve tonnes and grade have increased, the overall grade and tonnage estimate of the resource has declined. This reflects a more accurate estimation of the deposit’s grade and accounts for the diminishing quality of the deposit over time.
Recently, South African coal and iron ore exporters revealed plans to sign multibillion-rand deals with Transnet to repair rail lines and boost shipments.
