This article was written by the Mining Affected Communities United in Action (MACUA)
The Mining Affected Communities United in Action (MACUA) takes note of the recent press statement by the Department of Mineral and Petroleum Resources (DMPR) concerning the dispute between Assmang (Black Rock Mine) and PP Gemstones over the mining and trade of sugilite, a rare and valuable gemstone found in the Northern Cape.
While MACUA understands that disputes around licenses are civil matters subject to due legal process, we are deeply concerned by the DMPR’s failure to address the core issue of alleged illegal mining and unlawful exportation of gemstones. This is a matter that goes beyond civil dispute and into potential criminal conduct.
There are many critical allegations that remain unanswered.
According to publicly available reports, a foreign national was arrested at OR Tambo International Airport attempting to export R700 million worth of gemstones, allegedly purchased from Assmang. The individual reportedly told authorities that he had been buying gemstones from Assmang for many years, suggesting a long-standing history of undocumented and illegal trade. Assmang does not possess a mining right or permit to mine gemstones, including sugilite. The exclusive permit holder for this mineral is PP Gemstones.
Violation of Key Legal Provisions
Based on the information available, MACUA highlights the following potential violations of the Mineral and Petroleum Resources Development Act (MPRDA) and other laws:
o Section 5(4) – Illegal Mining- No person may mine without the required right or
permit. If Assmang extracted and sold gemstones without such a permit, they are in violation of this provision.
o Section 27(1) – Exclusive Mining Permit to PP Gemstones. PP Gemstones holds the only valid permit for sugilite. Any competing activity by Assmang would be unlawful.
o Section 19(2) – Mining Beyond the Scope of the Right- Assmang’s rights are limited to manganese according to the DMPR. Mining other minerals without amending the right is not permitted.
o Section 98 – Criminal Offences and Penalties- Contravention of the Act is a criminal offence, punishable by up to 10 years imprisonment or a fine.
o Section 10 – Lack of consultation with affected parties- Any expansion into
gemstone mining without consultation violates the procedural rights of communities and other stakeholders.
o Prevention of Organised Crime Act (POCA)- Sale and export of illegally mined
gemstones may constitute money laundering or racketeering.
o Tax and Customs Violations- Selling and exporting unlicensed minerals may
constitute tax evasion and fraud.