The Star reports that divisions over the controversial R640m royalties deal between platinum mining giant Lonmin and the Bapong community are deepening, with the local tribal council demanding that the producer be shut down.
If successful, the stand-off could result in about 33,000 job losses, which would severely cripple the already poverty-stricken and underdeveloped community of Bapong near Brits in North West. The company has already invested R1.6billion in procurement contracts with Bapo Ba Mogale Investment (BBMI). The proposal was contained in two letters written by the Bapo ba Mogale Tribal Authority in October and this month pleading with President Jacob Zuma and Mineral Resources Minister Mosebenzi Zwane to take drastic steps against Lonmin. This move has exposed the broken relations in what was once a cosy affair between the company and the tribal house, who are the owners of the land, following the signing of their 40-year deal in November 2014. An impasse occurred earlier this month when Lonmin could not transfer the annual R5m to the Local Economic Development Trust, which is being managed by BBMI on behalf of the council and the community. The non-payment ignited a violent protest last week by some members of the community who are employees and beneficiaries of programmes linked to the trust. Lonmin’s Peter McElligott, said the company would pay the R5m in two instalments, on 25 November and 15 January.
- Read this report by Lindile Sifile in full at The Star
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