Ivanhoe Mines: Impasse delays construction

CONSTRUCTION of the biggest platinum mine planned since 1993 is being delayed because of an impasse between billionaire Robert Friedland’s Ivanhoe Mines and the Department of Mineral Resources over the extent to which local communities will benefit. The department delayed authorisation to start building the $1.6 billion (R17.6bn) Platreef mine by 12 weeks to a target date of November 26, saying some elements of the company’s plan to benefit the surrounding community were “sketchy” and did “not offer much”, according to a letter sent to Ivanhoe. The department said its demands were “not exhaustive” and it may request “further clarification” before it gives the go-ahead. Ivanhoe chief executive Lars-Eric Johansson said in an October 9 response to the mineral resources department that “we believe that each and every formal request by your department to date has been accommodated”. The department’s demands come amid opposition by some groups from one of the country’s poorest communities in northern Limpopo over how Ivanplats local unit brokered a deal to sell community members a stake in the project to meet government requirements. Mineral Resources. Minister Ngoako Ramatlhodi had asked to meet Friedland to resolve issues, the department said last week. The department “cannot ignore complaints from the community and is duty-bound listen to the communities and address their concerns”, it said. – Bloomberg