Patrice Motsepe's Firm Barred From Phosphate Asset

African Rainbow Capitals Kropz faces a major setback as SANParks denies access to phosphate reserves within South Africas West Coast National Park.

Conservationists and the WWF oppose Kropzs mining plans, warning of risks to wetlands, fragile aquifers, and over 250 bird species in the ecologically sensitive area.

The ruling underscores rising environmental scrutiny on Africas mining industry, potentially impacting Motsepes reputation for socially responsible investing.

South African billionaire Patrice Motsepes African Rainbow Capital has run into a major obstacle after the countrys national parks authority blocked its mining unit, Kropz, from accessing key phosphate reserves inside a protected conservation area. This deals a blow to Kropzs long-running efforts to expand near its 160 million Elandsfontein mine and puts a spotlight on the growing tension between mining and environmental protection in South Africa.

The Elandsfontein project, located just outside the West Coast National Park about 98 kilometers north of Cape Town, has been at the center of controversy for more than a decade. Conservationists have fought against the project from the start, warning it could cause lasting damage to one of South Africas most sensitive ecosystems.

Kropz, which is 90 percent owned by African Rainbow Capital Investments, had asked the South African National Parks SANParks in March to remove part of the West Coast National Parks protected status. The goal was to tap into South Africas second-largest phosphate deposit, which lies in a wetland recognized internationally for its ecological value.

But SANParks firmly rejected the request. Kropz has been informed of the decision. SANParks cannot allow any mining activities within a declared national park, as this is prohibited, spokesperson JP Louw said.

The setback comes just after the World Wildlife Fund WWF filed a formal objection to Kropzs application and announced legal action against the companys operations near the Langebaan Lagoon, a wetland listed under the Ramsar Convention. Environmentalists warn that mining in the area could threaten a fragile aquifer system and put more than 250 bird species including flamingos and sandpipers at risk.