The Elandsfontein phosphate mine in South Africa faces a lawsuit from the World Wildlife Fund regarding environmental offset exemptions. Concerns regarding its impact on nearby ecosystems have persisted for over a decade. Kropz, owner of the mine, plans to evaluate its stance amidst ongoing legal and operational challenges, while updates to mineral resource estimates reflect evolving assessments of the deposit’s quality.
The Elandsfontein phosphate mine in South Africa, valued at $160 million and owned by billionaire Patrice Motsepe’s African Rainbow Capital Investments, is currently facing a legal challenge from the World Wildlife Fund (WWF). The WWF has filed a lawsuit against South Africa’s Environment Minister, Dion George, concerning his prior decision to dismiss appeals regarding an environmental offset exemption for the mine, as reported by Bloomberg.
The Elandsfontein mine, which contains the country’s second-largest phosphate deposit, has been embroiled in environmental controversies for over a decade. Concerns have been raised about the potential impact of mining operations on the Langebaan Lagoon, located 61 miles north of Cape Town, and its surrounding aquifer. Kropz, the company that owns 90% of the mine, has also been named in this legal matter.
Kropz had previously proposed to purchase and donate over 20,000 acres of land to the West Coast National Park as part of an offset proposal that was rejected by the provincial ministry in 2021. In its recent legal filing at South Africa’s High Court on March 13, the WWF stated 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 recognized these developments and is currently evaluating its stance. Acquiring the mine in 2010, Kropz has dealt with various challenges, including technical difficulties and environmental opposition, which have hindered the progress of opening the mine. In June 2024, the company updated its JORC (2012) compliant mineral resource estimate, which somewhat reversed prior significant reductions in declared ore reserves from 2018 to 2022 due to additional infill drilling conducted in 2023.
While the declared reserve tonnes and grade have increased, the overall grade and tonnage estimates of the resource have declined, reflecting a more precise assessment of the deposit’s quality over time. Concurrently, South African coal and iron ore exporters have announced plans to sign multibillion-rand contracts with Transnet to enhance rail infrastructure and increase shipping capacity.
The Elandsfontein phosphate mine is facing significant legal challenges, particularly concerning environmental considerations as raised by the WWF. The ongoing disputes highlight the complex balance between resource extraction and environmental concerns in South Africa. As Kropz assesses its position amidst these challenges, the mine’s future remains uncertain, emphasizing the pressing need for effective environmental management in mining operations.
Original Source: www.mining-technology.com
