Mining stand-off near Barkly West as police probe alleged fraud

A STAND-OFF has developed between a group of mining companies following a failed mining exercise near Barkly West, during which equipment was seized and is being held as surety.

SAPS Northern Cape spokesperson Warrant Officer Molefi Shemane this week confirmed that the Barkly West Detectives Unit is investigating a fraud case that was opened on October 18.

“No arrests have been made at this stage and investigations are ongoing,” Shemane said.

The dispute stems from a joint venture involving Meem Mining, Lephomo Minerals and Ogle Enterprises, which partnered with consultant Blue Noze Resources to process diamond tailings at the Simolotse Mine using a pan-based washing plant.

The director of Ogle Enterprises said he and his business partner, Meem Mining, invested about R430,000 after being approached by Blue Noze Resources to participate in the venture.

“It later became clear that this was a fishing expedition, as no diamonds were recovered. When we enquired about what had happened to our money, we were shown mining equipment that was apparently purchased with our funds,” he said.

He further alleged that the washing pan was moved from the Simolotse Mine to another mining site near Longlands without their knowledge.

“The equipment has since been stripped, and other interested parties have also laid claim to it,” he added.

He stated that there had been little progress since the criminal case was opened.

Another mine owner said that he was also owed money in connection with the same mining operation, but indicated that he did not wish to become involved in the dispute.

“They used my equipment, including a front-end loader and an excavator, and later dumped it in the veld. I was asked to allow the use of my mining permit, but I got a raw deal. In these situations, it is usually the middleman who benefits,” he said.

A miner currently holding the washing pan on his property said he refused to release the equipment until outstanding payments owed to him were settled.

In response, the director of Blue Noze Resources denied any wrongdoing, stating that no party had profited from the venture as no diamonds were recovered.

“Mining is a risk that investors have to accept. We all lost money, and I do not owe anyone. The criminal charges against me are an attempt to damage my reputation, and I intend to lay counter-charges,” he said.