Assmang, also known as Blackrock Mine, a mining company with links to African Rainbow Minerals (ARM) Assore has denied claims that it mines and sells an illegally mined gemstone called sugilite in Kuruman in the Northern Cape.

Last week, PP Gemstones, an emerging black-owned mining company held a media conference where it accused Assmang, a mining company affiliated with mining mogul, Patrice Motsepe's ARM, of illegally mining sugilite (precious stones) without the prerequisite license or permit.

Responding to the allegations, Assmang denied any involvement in wrongdoing with its spokesperson, Betty Maloka saying: “The policy of Assmang has always been to fully comply with the laws in South Africa and to cooperate with the law enforcement authorities whenever there are allegations of improper or illegal activities. Assmang has initiated its own investigation in this matter, and the concluded investigation report will put a stop to these unfounded and baseless allegations.”

PP Gemstones last week claimed that it is the sole permit holder of sugilite, a relatively rare pink to purple cyclosilicate mineral with the complex chemical formula.

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.

The Department of Minerals and Energy (DMRE) is also accused of failing to mediate in the dispute.

On Tuesday, during a press briefing held at the African Pride Hotel 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 has failed to mediate and offer a long-lasting solution that would help PP Gemstones exercise its full rights as certified gemstone mining company.

Matebesi revealed three incidents in which sugilite, a by-product of manganese mining, was being smuggled out of the country through OR Tambo International Airport, resulting in a stand-off and more than R6 billion of this commodity being held at the airport while the dispute continues in the courts.

“We have taken all the necessary steps to ensure that we comply with all the regulatory requirements in obtaining the three mining permits and as things stand, we are the sole licensed holder of the rights to mine this precious gemstone only discoverable in the Northern Cape, specifically in the Kuruman area while Assmang has rights to mine Manganese," Matebesi said.

Matebesi called for the government to intervene and stop big companies from abusing their power and political connections to suppress emerging mining companies.

“The issue of big companies using their access and connections to bully and suppress new entrants in mining has been a long-standing problem. The frustration is that companies like ours invest millions in obtaining legal mining licenses—an expensive and rigorous process—only to find that these permits hold no real value because of unlawful interference from industry giants,” said Matebesi.

Attempts to get comment from DMRE were unsuccessful at the time of going to print with departmental spokesperson, Makhosonke Buthelezi saying they would prefer a sit down meeting to discuss the matter.

Reacting to the stand-off, provincial secretary of the Congress of the South African Trade Unions (Cosatu), Orapeleng Moraladi called for the two parties to find ways of resolving their differences before it is too late.

He said in their meeting of last October the Federation together with the South African National Civic Organisation (SANCO) met the management of Assmang mine near Kuruman in the Northern Cape in an attempt to resolve the grievances, but these proved fruitless.

“Cosatu is dismayed and worried about the silence of SARS, DMRE, SAPS and the leadership of the government in this matter. The government and institutions of law enforcement cannot be silent when the minerals of this country are smuggled out and revenue is lost through illicit trade. There are no arrests, no prosecutions nor any sign of willingness to help address this unfortunate situation and therefore Cosatu Northern Cape appeals to authorities to attend to this matter before it is too late,” he said.

siyabonga.sithole@inl.co.za

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Battle over Billion-rand sugilite mining rights intensifies