Amplats reaches deal to prevent further unrest

A TRADITIONAL leader has agreed to a more transparent structure for a R175-million community trust funded by Anglo American Platinum (Amplats), a move that aims to curb unrest around the firm’s most profitable mine.

The changes relate to the Mapela Trust, which was set up to fund development projects in communities around Amplats’ Mogalakwena operation, the world’s largest open-pit platinum mine and the Anglo American unit’s main cash spinner. The structure of the fund has proved a flashpoint, with local communities saying the way cash was spent was not transparent and too much authority was given to the chief, known as Kgoshi, to determine where money was invested.

Protests over two years ago temporarily closed the mine and community leaders had threatened more action to demand changes.

Lawyers representing local communities said a deal between Amplats and the chief had been reached.

“There is a significant dilution of the chief’s power across the board,” Johan Lorenzen, one of the lawyers, said.

Amplats confirmed this. “We have signed the agreement. The issues have been resolved,” spokeswoman Mpumi Sithole said.

Under the new structure, four of the Mapela Trust’s nine trustees will be elected directly by local communities instead of just two that were picked by the chief to represent them.

The other trustees include an independent chairman, the Kgoshi, a member of a traditional council, a member elected by village chiefs and an Amplats representative.

Sithole said the community would elect their representatives before any cash was allocated to projects.

Other mining companies have also been cutting deals with traditional leaders.

Impala Platinum and Lonmin have also had operations disrupted by community protests linked to deals with chiefs.