turning point, page-42

http://www.thenewage.co.za/16333-9-53-Fight_for_platinum_riches_rages_on

Hopes of the Australian Stock Exchange-listed Nkwe Platinum to capture two platinum-rich farms outside Steelpoort, in the Limpopo province, seems to have been dashed again with signs that the cat fight for the land is far from over.

The four-year-old feud pits members of the affected communities against each other but some observers have suggested that the fight is actually between financial sponsors of small feuding groups within these communities.

Nkwe Platinum pulled out all the stops last week to showcase the apparent resolution of the feud surrounding the platinum rich farms ? Eerste Geluk and Nooitverwacht. It flew an entourage of journalists to Steelpoort to witness the communities partnered in the project declare peace and commitment to the development of the farms.

The presence of the paramount chief of the BaPedi, KK Sekhukhune, and a host of other traditional royalty, denoted the efforts Nkwe was putting into relating its message. The key message was that the company ?has regained its interests in both projects? and it would now proceed with its more than R1bn development project.

As it now seems, it was all in vain for Nkwe, which is knee deep in the messy battle over the two farms. The dissenting members of the affected communities seem to have thrown another spanner in the works as they are said to have dismissed the resolution.

Nkwe?s pursuit of the two farms ran into serious trouble about four years ago when a section of the affected community called Bengwenyama ya Maswati challenged the awarding of the prospecting rights to Nkwe. Nkwe came in as a business partner and facilitated the economic participation of the affected communities Roka Pasha and Eerste Geluk.

The participation of these communities was supposed to take place through an entity called Genora Resources, which is a controlling shareholder in Nkwe.

The Roka Phasha?s participation was linked to its occupation of Eerste Geluk farm and Bengwenyama ya Maswati linked to Nooitverwacht.

The dissenting section of Bengwenyama ya Maswati said the community was not ?properly consulted in the formulation and awarding of the prospecting rights. Based on a successful land claim over the Eerstegeluk farm, they also argued that its participation should cover both farms, which places it in conflict with the community of Roka Phasha.

The matter ended up in the Constitutional Court, which in November last year ordered the Department of Mineral Resources (DMR) to restart the prospecting rights application process and do proper community consultation.

The DMR restarted the process and early this month re-awarded the rights under section 104 of the Mineral and Petroleum Resources and Development Act.

Section 104 relates to the awarding of prospecting rights to a community trust as opposed to private entities. The DMR?s latest award maintained the separation of the prospecting rights according to occupation.

As a result, the Roka Pasha community emerged with rights over Eerste Geluk while Bengwenyama ya Maswazi award was limited to Nooitverwacht. Furthermore, the Nooitverwacht rights were divided 50-50 to cater for the divisions in that community.

Nkwe came out last week to declare that it was ready to press ahead with the development of the multibillion rand platinum group metals mining projects in Steelpoort. It said the DMR?s latest decision solidified the union between Nkwe and the communities that started four years ago.

?This move is significant in that it provides not only economic opportunities for all, but it also forges a strategic partnership,? said Nkwe?s MD Maredi Mphahlele. ?The partnership will embark on a meaningful and sustainable path of social and infrastructural development for the area.?

Thete Phasha, a spokesperson of Roka-Phasha Phokwane tribal authority said the community was ready for the project to take off.

Sizani Nkosi, who was presented as spokesperson of the Bengwenyama ya Maswati community, said it was now all systems go for the mining project.

However, the representatives of the dissenting community were absent and are said to be looking at mounting a legal challenge.

The City Press reported at the weekend that the dissenting faction of the Bengwenyama Ya Maswati plan to drag the DMR back to court.