REUTERS

The communities of Steelpoort that won the battle for the ownership of platinum resources on ancestral land last month have struck a deal with junior mining house Nkwe Platinum to mine in the small Limpopo mining town.

Under the deal, the communities will own 70 percent of the estimated 20 million-ounce project while Australian-listed Nkwe will get the remaining 30 percent for providing funding and skills for the operation.

The Roka Phasha and Bengwenyama Yama Swati communities were awarded prospecting rights by the Department of Mineral Resources last month.

Nkwe announced last week at a function held in Steelpoort that, through is its majority shareholder Genorah Resources, it had become the strategic economic partner for the Roka Phasha and Bengwenyama Yama Swazi.

Originally, Genorah was awarded the prospecting rights until the Constitutional Court set aside the rights in December as the company had failed to properly consult the residents of farms where the resource was located. After the Constitutional Court ruling, both communities re-applied for the rights with Genorah as a partner after negotiations with Genorah.

Sizani Nkosi, a member of the Bengwenyama Yama Swati Royal Tribal Council said the Constitutional Court ruling was “a blessing in disguise”.

“In the application by Genorah, the communities had been promised a stake of between 5 percent and 10 percent of the operations. Now the shareholding has moved to 70 percent, Genorah will own 30 percent. We are happy now.”

Nkosi said the community believed Genorah had its interests at heart.

The Roka Pasha community was awarded prospecting rights to the Eerste Geluk farm. Nkwe had also partnered with the Nooitverwacht community where a prospecting right of 50 percent was awarded to the Bengwenyama Yama Swati and the other 50 percent to private company Miracle Upon Miracle.

Nkwe managing director Maredi Mphahlele said the awarding of the prospecting rights was the first since the launch of the Mineral and Petroleum Resources Development Act. Genorah chairman Sharif Pandor said that “some investors left, but those who stayed demonstrated their confidence”. - Dineo Matomela