Billionaire’s South African phosphate mine faces legal challenge

A $160 million South African phosphate mine owned by billionaire Patrice Motsepe’s African Rainbow Capital Investments Ltd. that’s been beset by environmental disputes for over a decade is facing a fresh obstacle.

The World Wildlife Fund is suing South Africa’s Environment Minister Dion George over his decision in September to dismiss appeals against an offset exemption given to the Elandsfontein mine.

Kropz Plc, which is 90% held by African Rainbow and is the owner of the Elandsfontein mine, was also named as a respondent in the lawsuit.

Under the offset proposal, which was invalidated by the provincial office of the ministry in 2021, Kropz would have bought and donated more than 20,000 acres of land to the West Coast National Park.

“The environment, and therefore the public at large, has suffered prejudice from the unconscionable delays in the implementation of the offset requirements,” the WWF said in papers filed with South Africa’s High Court on March 13.

The challenge is the latest attempt by environmentalists to oppose the mine which they say endangers the Langebaan Lagoon, which lies 61 miles north of Cape Town, and the associated aquifer. Those disputes, and technical issues, delayed the start up of the mine on South Africa’s second-biggest phosphate deposit, which the company acquired in 2010.

“Kropz has noted these developments,” the company said in a response to a query. “They will be considering their position.”

The environment department and African Rainbow didn’t immediately respond to requests for comment.

(By Antony Sguazzin)