Swazi troops seize Shabangu’s diamond mine

CONTROVERSIAL property tycoon Roux Shabangu not only lost his landmark Pretoria building for a fraction of its value this week, but had an army march in to take over his diamond mine.

The Swazi army occupied Shabangu’s Dvokolwako mine near Manzini after the government revoked his mining rights. The army was sent in, according to the Swazi government, to prevent “illegal entry” to the mine.

On Wednesday, Shabangu’s Sanlam Middestad building in Pretoria was auctioned for R66-million.

The building, one of the tallest in the capital, was valued at R850-million.

The Sunday Times has established that Shabangu lost his Swazi permit because he missed several deadlines to start mining operations. The mine has potential reserves worth about R3.5billion, according to the Swazi media.

Swaziland’s senators expressed misgivings about Shabangu following accusations of corruption levelled against him in South Africa.

At the centre of the corruption allegations is the Middestad building, which went under the hammer after Shabangu failed to keep up payments on the R220-million bond with Nedbank.

The police briefly had offices in the building after it was bought by Shabangu in 2011 in a R500-million lease agreement.

The deal led to accusations of a “corrupt relationship” between Shabangu and the then national commissioner of police, Bheki Cele. The lease deal was struck without following tender processes. Cele was subsequently sacked.

Shabangu’s spokeswoman, Percy Shabangu, said the sale was by “mutual agreement” between Roux Property Fund and Nedbank.

“This is the only asset that’s being sold in execution,” she said.

Swazi government spokesman Percy Simelane confirmed that the country was seeking a new investor for Dvokolwako mine.

Shabangu’s company has reportedly spent about R14-million since 2009 on the mine. This included feasibility studies, testing mineral samples and designing the new mining operation.

The Times of Swaziland reported that Shabangu asked for a meeting with King Mswati to explain the delay in starting mining operations. The country’s minerals management board said it was unaware of any request.

Shabangu, according to the newspaper, also warned that it would be unwise to let another company or investor “take over where [he] had already invested and not been compensated”.

Dvokolwako mine, which is expected to produce more than 6 400 carats a month once in full production, was closed down in 2003 by its previous owners, TransHex Group, because of fluctuating diamond prices.

Between 1984 and 2003, more than three million tons of kimberlite ore, an igneous rock known for containing diamonds, were mined.

According to the Swazi Observer, Roux Consolidated Investments bought 50% of Dvokolwako in 2009. Mswati’s

Shabangu’s Middestad building in Pretoria was auctioned for R66m

trust holds the other 50%.

In June last year, The Times of Swaziland reported that senators had cast doubt on an assurance by Princess Tsandzile, the minister of natural resources and energy, that the mine would be in operation by August last year.

Senator Bhutana Dlamini reportedly warned the minister not to allow herself to be lied to.

The Swazi Observer quoted the deputy president of the senate, Ngom’yayona Gamedze, as questioning the granting of a licence to Shabangu in view of the controversy around him in South Africa.