The Elandsfontein phosphate mine in South Africa is facing a lawsuit from the World Wildlife Fund, challenging the dismissal of environmental offset appeals by the Environment Minister. With longstanding environmental concerns surrounding the mine’s impact on the Langebaan Lagoon, this legal action underscores ongoing disputes. Meanwhile, Kropz, the company managing the mine, continues to grapple with various operational setbacks.
The Elandsfontein phosphate mine, valued at $160 million and owned by billionaire Patrice Motsepe’s African Rainbow Capital Investments, is currently facing a new legal challenge from the World Wildlife Fund (WWF). The WWF has taken South Africa’s Environment Minister, Dion George, to court over his decision to dismiss appeals regarding an environmental offset exemption for the mine, as reported by Bloomberg.
Located near Langebaan Lagoon, the Elandsfontein mine contains South Africa’s second-largest phosphate deposit and has been embroiled in environmental disputes for over a decade. There are significant concerns that the mine’s operations could adversely affect the lagoon and its surrounding aquifer, which is situated approximately 61 miles north of Cape Town.
Kropz, which is 90% owned by African Rainbow and holds ownership of the Elandsfontein mine, has also been named as a respondent in the lawsuit. The company had previously proposed to donate over 20,000 acres of land to the West Coast National Park as an environmental offset; however, this proposal was rejected by the provincial office of the ministry in 2021.
In the legal documents submitted to South Africa’s High Court on March 13, the WWF contended that the public has experienced negative impacts due to significant delays in fulfilling the offset requirements. In response to the unfolding situation, Kropz has acknowledged these developments and is currently evaluating its options moving forward.
Since its acquisition of the mine in 2010, Kropz has encountered various challenges, including technical difficulties and robust environmental opposition, which have hindered the commencement of mining operations. In June 2024, the company released an updated mineral resource estimate in line with JORC (2012) standards, which partially mitigated previous substantial write-downs in declared ore reserves from 2018 to 2022, primarily due to additional infill drilling completed in 2023.
Despite an increase in declared reserves, the overall grade and tonnage estimate of the resource has declined, representing a more precise evaluation of the deposit’s quality. Concurrently, South African coal and iron ore exporters have announced plans to enter into multibillion-rand agreements with Transnet to enhance rail infrastructure and bolster shipment volumes.
The Elandsfontein phosphate mine is once again under scrutiny as the World Wildlife Fund has initiated legal action against South Africa’s Environment Minister for rejecting appeals related to environmental measures. The ongoing legal battles highlight significant environmental concerns connected to the mine’s operations. While Kropz has faced numerous challenges since acquiring the mine, including technical setbacks and opposition, recent updates reveal alterations in mineral resource estimates that reflect a more realistic appraisal of the deposit’s viability.
Original Source: www.mining-technology.com
