(From left) PP Gemstone CEO, Pitso Motebesi, chairman Matome Sefalala and Dimakatso Moloi. PP Gemstone, a black-owned mining company has accused Assmag, a mining company affiliated with mining mogul, Patrice Motsepe’s African Rainbow Minerals (ARM) and Assore of using the court processes to frustrate their operations and engaging in illegal mining practices.
Image: Itumeleng English
The Department of Minerals and Energy has denied claims made by PP Gemstones, an emerging black-owned mining company which last week accused the department of turning a blind eye to the illegal mining of sugilite (precious stones) by rival mining company, Assmang, also known as Black Rock.
On Monday, DMRE spokesperson, Makhosonke Buthelezi said the allegation was not true, as the department had tried to intervene in the stand-off between the two mining companies whose dispute over the mining rights has spanned more than four years .
Buthelezi said the matter is complicated by the fact that the different mining rights held by the rival mining companies are within the same piece of land.
"The case between Assmang (Black Rock) and PP Gemstones has been such a complex case where license holders had failed to reach an agreement on how to work together due to the coexistence of different minerals on the same land which is a result of various geological processes.
"The department, however, refutes all allegations made by PP Gemstones that it is turning a blind eye to illegal mining of sugilite by Black Rock mine and that it has been ignoring correspondence from their lawyers.
"Assmang operates the Black Rock mine on various farms in the district of Kuruman, Northern Cape Province. In terms of its issued and registered and converted mining right, it is entitled to mine for manganese ore," said Buthelezi.
Last week, IOL reported that PP Gemstones claimed that it is the sole permit holder of sugilite, a relatively rare pink to purple cyclosilicate mineral with the complex chemical formula.
During a press briefing last week, PP Gemstones CEO, Pitso Matebesi accused Assmang of using the courts to frustrate their efforts to exploit the rights contained in their mining permit while also alleging that the DMRE had failed to mediate and offer a long-lasting solution that would help PP Gemstones exercise its full rights as certified gemstone mining company.
For the past six years, the rights to this gemstone, only found in the Northern Cape, has become the source of a legal wrangle between the two companies.
According to DMRE, PP Gemstones took ownership of their permit to mine sugilite in 2020 after the regional manager in the Northern Cape region accepted three mining permits lodged by PP Gemstones for gemstones, excluding diamonds.
"When Assmang became aware of these permit applications around May 2021, it lodged internal appeals against the acceptance thereof, claiming the contested portion of land that forms part of Black Rock Mining area is covered by its converted mining right. Moreover, it contends that the acceptance of mining permits for gemstones is legally incompetent as it already holds the rights to gemstones," said Buthelezi.
Due to the complexity of the issue, pending a legal battle between the two mining companies, Buthelezi says the DMRE is not prepared to act irrationally and in haste.
"The department also refuses to be coerced into making decisions prematurely, or even illegally for any reason even as we remain committed within the confines of the law to enabling investment in the sector," added Buthelezi.
Assmang also denied the allegations made by PP Gemstones with spokesperson Betty Maloka saying Assmang has done everything to ensure that it complies with the law.
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