BY: Saneliso Mlambo
PP Gemstones Mining & Exporting has accused Assmang, a leading mining company co-owned by Patrice Motsepe’s African Rainbow Minerals (ARM) and Assore, of illegal mining activities at the Black Rock Mine in the Northern Cape.
The dispute centers around the illegal extraction and export of sugilite gemstones, a by-product of manganese mining.
The conflict began when PP Gemstones applied for mining permits to extract gemstones in Assmang’s licensed area. Assmang objected to the Department of Mineral Resources and Energy (DMRE), citing concerns over overlapping mining rights.
Despite these objections, the DMRE granted environmental authorizations to PP Gemstones, allowing them to mine sugilite within Assmang’s boundaries. In response, Assmang took legal action, challenging the authorizations, arguing that they were granted without proper consultation and consideration of existing mining rights.
Further complicating the situation, a gemstone trader admitted that Assmang facilitated the unauthorized export of sugilite.
The allegations have sparked concern, with labor unions like COSATU condemning the illegal gemstone trade and highlighting the exploitation of resources. Additionally, the South African Revenue Service (SARS) has seized millions of rand connected to the smuggling activities.
This case has drawn attention to illegal mining, regulatory gaps, and corruption within South Africa’s mining sector.
The involvement of high-profile companies and individuals highlights the complexities of mining rights, environmental laws, and corporate governance.