Lonmin, Bapong rift
DIVISIONS over the controversial R640 million royalties deal between platinum mining giant Lonmin and the Bapong community are deepening, with the local tribal council demanding that the mine shut down.
A shut-down could result in about 33000 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 R1.6 billion in procurement contracts with Bapo Ba Mogale Investment (BBMI).
The proposal was contained in two letters written by the Bapo ba Mogale Tribal Authority this month and last month, pleading with President Jacob Zuma and Mineral Resources Minister Mosebenzi Zwane to take rapid and 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.
Lonmin said this money was supposed to be paid every February as per the deal.
The non-payment ignited a violent protest last week by some members of the community – known as ambassadors, who are employees and beneficiaries of programmes linked to the trust.
Allegations are that the ambassadors are in the pockets of the tribal council, which uses them to threaten residents opposing the Lonmin deal.
Some of the ambassadors have since been hired for council projects.
But two weeks ago, they turned against their handlers when they started mobilising themselves before torching tribal offices, a bus belonging to the council and two cars, one of which was owned by BBMI chief executive Lehlohonolo Nthontho.
Nthontho was the key person in the orchestration and conclusion of the Lonmin agreement, despite objections from some members of the community who deemed it deceitful and not transparent.
This resulted in some residents being threatened, while others fled the area, fearing for their lives.
The legitimacy of the deal is being contested in the courts.
It appears that Nthontho has allegedly now turned his back on Lonmin and is demanding its closure or suspension of its operations.
In a letter addressed to Zuma and Zwane on November 13, he accused the company of violating its social and labour plans.