Anglo ActionAid 2.indd - Anglo American Platinum

THE FACTS 

Typical existing house in Motlhotlo 

Typical house in new village 

Anglo Platinum’s response 

to ActionAid allegations

Contents 

Executive summary 3 

Introduction 5 

Section 1 6 

Section 2 9 

Section 3 16 

Final comments 36

Executive summary 

ActionAid, an international anti-poverty agency, released a report on March 26, 

2008 entitled “Precious Metal – The impact of Anglo Platinum on poor communities 

in Limpopo, South Africa. 

Anglo Platinum strives to be a responsible corporate citizen and is distressed by 

the serious allegations made by ActionAid, particularly given that we believe the 

report is extremely one-sided and contains many inaccuracies and distortions. 

Therefore it is appropriate to offer all our stakeholders and broader society an 

alternative view to set the record straight so that readers can decide for themselves 

whether Anglo Platinum is acting responsibly or not. We welcome the ActionAid 

recommendation that the South African Human Rights Commission undertake a 

full investigation as we believe such an investigation would yield a balanced and 

positive outcome. 

It is unclear from the ActionAid report how they selected their research sample 

and what their overall research methodology and approach was to ensure unbiased 

reporting. Only a few interviews were held with select members of the community 

that we already know are not satisfied and who represent a very small proportion 

of the more than 200 000 people in the areas covered. It is also worth highlighting 

that the report did not include information pertaining to Anglo Platinum’s other 

operations in the Limpopo Province, and particularly the Group’s two biggest 

operations namely Amandelbult and Union mine. Reasons for this are not known 

and not provided by ActionAid. This again highlights the selective nature of the 

study. 

Mining activities the world over are known to have significant positive and negative 

socio-economic impacts on adjacent communities as well as potential negative 

impacts on the environment. At Anglo Platinum we have put in place a number of 

governance processes, management systems and reviews to ensure that the positive 

impacts are maximized and the negative impacts avoided or minimized. The full 

details of these processes and structures are included in our 2007 sustainable 

development report, a full electronic copy of which is available at www. 

angloplatinum.com. 

Despite these processes we do sometimes make mistakes, like any organisation of 

our scale, but we have a strong commitment to making a positive difference to the 

communities around our operations. We believe that the great majority of 

communities associated with us are supportive of mining and the opportunities 

which it creates. We have realized that we cannot please every individual member 

and/or faction of the community all of the time. In addition to the opportunities 

which we create and the tax revenues we generate, we have been amongst the 

leading mining companies in seeking to improve the developmental impacts of 

our operations. We have done this through initiatives like pre-employment training 

to enable people to seek jobs, local enterprise development, sustainable livelihoods 

initiatives and local procurement drives. All of this is on top of normal social 

investment and infrastructure development. 

March 2008 | 

3

Executive summary 

We have been recognized by external parties for our efforts in these areas and have 

won many national developmental and sustainability awards in South Africa 

including the Nedbank Green Mining Award in both the sustainability and 

environmental categories, The Mail and Guardian Investing in the Future Awards, 

for work with schools in Limpopo; and the Govan Mbeki Housing Award which 

was received for our development of low and middle income housing projects. 

The detailed responses to the allegations made by ActionAid that we at Anglo 

Platinum are breaching the communities’ human rights by preventing access to 

land and water resources are included in the main body of this report. Kindly use 

this report to judge for yourself whether Anglo Platinum is operating responsibly or 

not and we await the outcome from the Human Rights Commission investigation. 

4 | Anglo Platinum Limited

Anglo Platinum’s response to ActionAid allegations 

Introduction 

This report contains Anglo Platinum’s response to the serious allegations made by 

ActionAid in their report entitled “Precious Metal – The impact of Anglo Platinum on poor 

communities in Limpopo, South Africa which was released by ActionAid on 26/3/2008. 

We take our commitments to our host communities extremely seriously and are strongly 

of the view that the ActionAid report is extremely one-sided and contains many 

inaccuracies. We have therefore deemed it appropriate to release a report of our own so 

that our stakeholders and broader society can make an informed decision as to whether 

we at Anglo Platinum are indeed acting responsibly or not. 

• The report has been broadly structured so as to: 

• provide a complete overview of Anglo Platinum’s operations in South Africa and 

specifically the Limpopo Province as the ActionAid omitted to provide information on 

key Anglo Platinum operations in the Limpopo province; 

• set the context within which South Africa is placed post the years of under development 

inflicted on communities during Apartheid; 

• give an overview of some of our sustainable development projects in the province so 

that the reader can get a flavour of the positive work we are doing in the comm. unities 

and for the environment (full details are included in the Company’s Sustainable 

Development Reports which are available at www.angloplatinum.com); 

• deal specifically with the inaccuracies in the ActionAid report as they pertain to PPL 

(renamed RPM Mogalakwena Section), Twickenham and Modikwa mines; and 

• detail a way forward and recommendations on how we will continue to address the 

community and environmental challenges we at Anglo Platinum face. 

March 2008 | 

5

The Facts 

Section 1 

Company background and operations 

The ActionAid chose to focus their research only at two wholly-owned and one joint 

venture operation in Limpopo Province, despite the title of the report. In this section we 

deem it appropriate to provide a complete overview of Anglo Platinum’s operations. 

Anglo American plc is the majority shareholder and holds a 76.5% (not 74.75% as reported 

by ActionAid) share in Anglo Platinum. Anglo Platinum’s major wholly-owned subsidiaries 

include: 

• Rustenburg Platinum Mines Limited (RPM) Rustenburg Section, Union Section and 

Amandelbult Section (Limpopo Province), which now also includes Potgietersrust 

Platinums Limited (PPL) which has been renamed RPM Mogalakwena Section; 

• Lebowa Platinum Mines Limited (Lebowa); and 

• Twickenham. 

The Group currently holds a 22.5% share of Northam Platinum. This share, along with the 

Group’s 50% stake in the Booysendal project, is to be sold to Mvelaphanda Resources as a 

part of a broad-based balck economic empowerment transaction. The Group is also 

engaged in joint ventures and partnerships with: 

• ARM Platinum, an HDSA1 mining company, to operate the Modikwa Platinum Mine 

(Limpopo Province); 

• Royal Bafokeng Resources, an HDSA partner, over the combined Bafokeng-Rasimone 

Platinum Mine (BRPM)/Styldrift properties; 

• Lonmin Platinum and HDSA partners, the Bapo Ba Mogale community and 

Mvelaphanda, over the Pandora PGM reserves; 

• Bakgatla-Ba-Kgafela community over Union Section (Limpopo); 

• XK partnership including Xstrata to operate the Mototolo Mine (Limpopo); and 

• Aquarius Platinum at Kroondal and Marikana mines and our shallow reserves at 

Rustenburg Section. 

The Group’s smelting and refining operations are wholly owned through RPM and situated 

in South Africa, with Polokwane Smelter being located in Limpopo Province. These 

operations treat concentrates from wholly-owned subsidiaries and joint ventures. The 

location of all these operations can be seen on the map in Figure 1. 

Anglo Platinum has, over the past few years, won many awards for its social and 

environmental programmes which have been judged by independent experts in the social 

and environmental fields. Some of these include: 

• The Nedbank Green Mining Award was won in 2006 for our overall sustainability 

performance which evaluated social, economic and environmental performance and 

we again won in 2007 in the environmental category for the environmental programmes 

at Amandelbult Mine, 

• The Mail and Guardian Investing in the Future Award in 2006 which evaluated the 

social economic development performance of the organization; 

1 HDSA – Historically disadvantaged South African 

6 | 

Anglo Platinum Limited


Figure 1: Locality map of Anglo Platinum’s operations in South Africa 

• The Govan Mbeki Housing Award which was received for our development of low and 

middle income housing projects; and 

• the “Company of the Future” Survey which evaluated social and economic 

performance. 

In addition, Anglo American also won prestigious national awards in 2007 for our social 

investment and sustainable development activities. The Anglo American Chairman’s 

Fund was ranked as the best corporate grant given in South Africa for the seventh 

consecutive year by our business and NGO peers. Meanwhile, our enterprise development 

initiative, Anglo Zimele, was ranked as the best small business development initiative in 

South Africa. Both of these initiatives operate in Limpopo province but, like the Anglo 

Platinum awards, Action Aid makes no mention of them. 

The South African Context and Anglo Platinum’s Operations 

within that 

South Africa is a developmental state which experienced decades of uneven development 

during the apartheid period from 1965 to 1994. This led to imbalances in the South African 

society that the present democratically elected government is attempting to rectify through 

numerous transformation programmes within society and business. As a result of this 

legacy of under development many of the communities around Anglo Platinum’s 

operations are impoverished and have never had access to education, employment, or 

fresh running water, nor have many owned land. 

Furthermore large numbers of people were forcibly moved from their land by the apartheid 

government into what were formally known as homelands or self governing territories. 

March 2008 | 

7

The Facts 

This resulted in large population densities in these homelands with very little development. 

Anglo Platinum’s PPL, Lebowa, Union and Twickenham mines all fall within areas that 

were previously classified as homelands. Within a 50 km radius of our operations we 

estimate a total rural underdeveloped population of approximately 4 million people living 

in more than 1200 villages. 

Communities within these former homelands or self governing territories have huge 

expectations that they will experience rapid development and upliftment in the democratic 

South Africa. Anglo Platinum wishes to play its part in helping these South Africans to take 

their rightful place in the economy of today’s democratic South Africa. 

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Section 2 

Anglo Platinum and sustainable development 

Anglo Platinum is committed to the principles of sustainable development, by which we 

mean striking an optimal balance between economic, environmental and social 

development. We will strive to innovate and adopt best practice, wherever we operate, 

working in consultation with stakeholders. This section provides some actual examples 

from the Limpopo Province of our sustainable development work, which demonstrates 

that the Company does indeed respect communities and human rights, contrary to 

allegations made by ActionAid on 26/3/2008. Additional details and the track record of 

our programmes can be found in the Company’s sustainable development reports which 

have been independently audited and released publicly since 2002. These reports are 

available in PDF format on our website at www.angloplatinum.com should you wish to 

download them. 

In summary though, Anglo Platinum, through its parent company Anglo American, has a 

firm commitment to the Universal Declaration on Human Rights, to the ten principles of 

the Global Compact and is a party to the Voluntary Principles on Security and Human 

Rights. We have put in place a number of governance processes, management systems 

and reviews to ensure that the positive impacts of mining are maximized, negative impacts 

avoided or minimized and human rights respected. 

We believe that the great majority of communities associated with our operations are 

supportive of mining and the opportunities which it creates. We also recognize that there 

are groups that are against mining and the impacts it causes, and attempt to engage with 

these groups and address their concerns. In addition to the employment and business 

opportunities which we create and the tax revenues we generate through the operation of 

our core business we have been amongst the leading mining companies in seeking to 

improve the developmental impacts of our operations and have been recognized for this 

as detailed in the introduction. 

Some examples of the positive work we are doing includes initiatives like pre-employment 

training to enable people to seek jobs (Case Study 1), local enterprise development (Case 

Study 2), sustainable livelihood and HIV/AIS initiatives (Case Study 3), training of the 

local police services in the voluntary principles on security and human rights (Case Study 

4), local beneficiation of platinum to create jobs (Case Study 5), improving living conditions 

(Case Study 6) and local procurement drives. 

March 2008 | 

9

The Facts 

Case Study 1 

MINE TRAINING CENTRE BEING DEVELOPED TO GROW LOCAL SKILLS 

AND CREATE JOBS 

Anglo Platinum has publicly announced that it has approved a R283 million Mine Training Centre 

to be constructed on its Twickenham Mine property in support of the social and labour plans for 

its new mining projects in Limpopo. 

The Mine Training Centre will support the training needs of 2 000 new mining employees per 

annum and will feed trained employees to new and existing mining projects on the Eastern Limb 

of the Bushveld Complex. The Mine Training Centre will include surface and underground training 

facilities to equip employees with conventional and mechanized mining skills to match the spread 

of mining techniques employed by Anglo Platinum. 

Constructions commenced in June 2007 with the first trainees enrolled. We are committed to 

improving our operating efficiency and recognize the positive effects that strong local communities 

around our operations have on performance. Sello Moloto, Premier of Limpopo province said, 

“The importance of job creation and poverty alleviation in Limpopo can not be emphasized enough 

and the appropriate skills acquisition is very important to support the expanding platinum mining 

business in our province.” 

In addition to the 2 000 trainees the project will provide 100 new permanent employment 

opportunities at the mine as well as 100 employment opportunities during the construction phase 

in the Limpopo province. Practical underground training in a working environment is the primary 

focus of the Mine Training Centre, however supervisory, infrastructure development and 

maintenance skills training will also be catered for. To complement the Mine Training Centre Anglo 

Platinum has significantly increased its artisan training and tertiary education funding. Anglo 

Platinum’s Engineering Skills Training Centre (“ESTC”) in Gauteng is currently undergoing a R27 

million upgrade to increase capacity and plans, over the next 5 years, to provide 1 400 qualified 

artisans. Over the same period Anglo Platinum will provide over 340 new bursaries to students at 

tertiary institutions, complimenting the current 486 bursars and providing a pipeline of graduates 

to satisfy the skills requirements of the new mines. 

View across the Mine Training Centre development area at Twickenham mine 

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Case Study 2 

ANGLO PLATINUM BUSINESS LINAKGE CENTRES 

In order to support local economic development 

in the communities around our operations a 

number of business linkage centres have been 

established to service Burgersfort, Lebowa, 

Mokopane, Thabazimbi, Mogwase and 

Rustenburg. 

Some of the companies assisted include: 

Mpatsagomo General Trading 

Mpatsagomo General Trading (MGT) is a closed corporation providing various services to Lebowa Mine. The 

company is owned by 32-year-old Brandy Modise who lives at Monametse village – one of the local villages. MGT 

initially had a cleaning contract with Lebowa Platinum Mine, which was recently renewed for a further 12 months. 

During 2006 the company participated in the BEE vendor development programme. Through this programme, the 

company expanded and has ventured into the construction industry. MGT recently secured a construction contract 

to provide stalls and a storeroom for local vendors who sell fresh produce to the mine’s employees. Financing to 

purchase the construction materials was provided. 

Vukuzenzele Trading 

Simon Makofane, a 58-year-old man from Praktiseer, which is close to Burgersfort, has been in the gardening 

business for many years. Simon has always worked as an employee, however in 2005 he decided to set up his 

own business called Vukuzenzele Trading. One of Simon’s early contracts was with Twickenham Mine where he 

had to plant over 100 trees at Mopetsi Camp. Through the incubator approach to business development Simon 

was capacitated in the tendering and invoicing processes and granted finance. Since this project, Simon started a 

gardening service and is currently providing services to 15 families in the town of Burgersfort. His company has 

also been referred to Libsa Tubatse, a business support initiative of the local municipality that Anglo Platinum 

co-funds. Here Simon’s son, who is also part of the business, will receive training on how to run a business so that 

he can assist Simon with the daily running of the business. 

Mahlangu Bus Services 

Modikwa Mine capitalised on a great opportunity for empowerment and capacity building, when it entered into a 

five-year contract with a local BEE company to provide transport for its employees. As part of the mine’s increased 

focus on safety across all aspects of its operation, a condition of the agreement was that Burgersfort-based 

Mahlangu Bus Services adds ten new vehicles to its fleet. 

Unfortunately, BEE entrepreneur David Mahlangu encountered major difficulties when he attempted to raise the 

finance for the new vehicles. Through the intervention of the local HUB, sufficient finance for the company to 

replenish its fleet was secured and the new buses were officially handed over at a ceremony on 22 October 2007. 

The incubator approach to business development will continue to supply these businesses with mentorship, 

guidance and technical support to ensure long-term and sustainable growth. 

March 2008 | 

11

The Facts 

Case Study 3 

ADDRESSING HIV/AIDS AND GENDER-BASED VIOLENCE: 

THE IMAGE PROJECT 

In South Africa, as in many other countries, poverty and unequal power relationships between 

men and women shape the nature of sexual relationships. What does encouraging a girl to 

abstain from sex mean, when a relationship with an older man could put food on the table And, 

for women experiencing domestic violence, how can they suggest using a condom, knowing the 

reaction this might provoke 

In sub-Saharan Africa, women make up the majority of those infected with HIV, and young women 

are three times more likely to get infected with HIV than young men. To get to the root of the 

problem, we have to go deeper and look at poverty, violence against women and women’s unequal 

status in society. 

The Rural AIDS & Development Action Programme (RADAR) had experience with HIV training and 

research, but needed a partner who could help tackle economic and social aspects. RADAR found 

a willing and suitable partner in the Small Enterprise Foundation (SEF), which had been doing this 

kind of work for years. Out of this partnership, the IMAGE (Intervention for Micro-finance AIDS & 

Gender Equity) Project was formed: a community-based intervention that combines micro-finance 

– the provision of small loans to poor households for income-generating activities – with a 12- to 

15-month gender and HIV training curriculum. The purpose of IMAGE is to improve the economic 

wellbeing and independence of communities, reduce vulnerability to both HIV and gender-based 

violence, and foster robust community mobilisation to address common concerns. 

Through various Anglo Platinum support initiatives, the IMAGE Project was able to expand 

substantially between 2004 and 2007, reaching over 4,500 households in 83 villages in the 

Sekukhuneland area. 

Micro-finance and gender equity training is a one-hour participatory session integrated into loan 

centre meetings every two weeks. One loan centre is established for each group of 40 women. 

The women are given a six-month structured curriculum and must participate in a six-month 

community mobilisation phase to develop village action plans around gender and HIV. 

Research by the University of Witwatersrand has shown, over a two-year period, households 

experience substantial improvements in economic wellbeing, the status of women is greatly 

improved, levels of violence are reduced by over 50%, loan repayment rates were at 99.7% and 

there was a 25% increase in levels of condom use. 

Comments from participants 

“I do not think we would have made it working as individuals.” 

“If one member has a problem, the sun will never go down without us knowing it.” 

“When I joined the project, I could not say the word condom, let alone use one. Today, I understand 

that condoms are important for my life and that of my children.” 

The World Health Organisation (WHO) Commission for the Social Determinants of Health in 2007 

selected the IMAGE Project as one of 12 global case studies. With Anglo Platinum’s commitment 

to additional support for 2008 to 2011, IMAGE will expand programme activities to reach over 

15,000 households in villages surrounding Anglo Platinum mining developments, focusing on the 

Mokopane, Fetakgomo, Greater Tubatse, Thabazimbi and Polokwane areas. 

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Case Study 4 

PROTECTION SERVICES HUMAN RIGHTS TRAINING 

The human rights training programme covers a range of issues including introduction and 

awareness to general human rights and protection services human rights-related issues. The 

Anglo Platinum courses included basic training on the Company’s vision and values, code of 

ethics, employment and labour rights, employment equity policy, sexual harassment and 

employment of women in risk areas. 

The purpose of this course was to create awareness and sensitivity of human rights issues among 

supervisory and operational protection services personnel and also to promote internal application 

of human rights principles in the protection services. 

To evaluate the knowledge of security personnel, various assignments were carried out, including 

understanding international human rights, the South African bill of rights, Anglo Platinum’s HIV/ 

AIDS policy, power of arrest, the use of firearms, and industrial action-related issues. 

Since the programme started, 97% and 81% of the existing 1,116 protection personnel and 756 

contractors have been trained, respectively. 

Anglo Platinum became aware of allegations made by some community members against the 

South African Police Service (SAPS) after conflicts about resettlements in various areas, including 

around Modikwa Mine. To assist in resolving this situation, Anglo Platinum’s protection services 

reviewed the outdated SAPS course and funded the development of a revised programme. The 

Anglo Platinum voluntary principles on security and human rights training programme were 

incorporated into the SAPS course. The revised programme covered general human rights 

principles, the rights of victims of crime and witnesses, the rights of offenders, the rights of the 

public, labour rights of SAPS officials and the right to just administrative action. This initiative 

could have a national impact on human rights, as the course will be adopted by the National 

Police College and delivered across the country from early 2008. 

March 2008 | 

13

The Facts 

Case Study 5 

PLATINUM TRUST OF SOUTH AFRICA (PTSA) 

The Platinum Trust of South Africa was formed in 2003 in partnership with the North West 

government, Anglo Platinum and the Small Enterprise and Development Agency (Department of 

Trade and Industry) to address socio-economic challenges in South Africa by promoting value 

addition in platinum group metals. 

This initiative aims to improve levels of skill, technology and art of platinum jewellery manufacture 

and ensure high-quality jewellery production for local and international markets. This will be 

achieved by developing a better understanding of this unique material, its manipulation, design 

characteristics, and using the latest relevant technology in manufacture. 

The SEDA Platinum Incubator enrolled its first students in March 2007. After eight months of 

intensive training, skill levels have improved dramatically, and 14 students will obtain mining 

qualification authority (MQA) learnerships in 2008. The standard of workmanship is impressive 

and the incubator is making marketable products for a number of clients, including the World of 

Platinum marketing company. 

The initial focus on the Platinum Trust of South Africa is in the jewellery sector where the aim of 

setting up an arranged production facility and market company has become a reality. 

The World of Platinum marketing company was created to provide the commercial vehicle for 

products manufactured locally and at the incubator. The first product is branded platinum jewellery 

under the Djadji Platinum brand. Djadji Platinum has been on the market for two years and is now 

available in 25 retail outlets across South Africa. World-class jewellery pieces, either plain or set 

with diamonds from the local Panda Diamonds Group, are quickly becoming popular with both 

local and overseas clientele. 

Globally the trend, especially with high-value products, is moving towards branded products 

because of brand consumer confidence. 

Although a new brand, Djadji Platinum is starting to make inroads into the hearts and minds of 

consumers. Backed by a reputable organisation such as Anglo Platinum, the brand should become 

a recognisable icon in future. 

Milestones in local platinum jewellery market development 

SEDA Platinum Incubator 

2006 Renovation and setting up workshops to manufacture platinum jewellery 

Recruitment of teaching staff 

Memorandum of understanding concluded with Rustenburg Orbit FET College 

2007 Intake of 18 learners 

Full accreditation of Orbit College by MQA 

Top 10 place in PlatAfrica competition in professional category 

Most contemporary piece winner in student category in PlatAfrica competition 

4 virtual tenants and 2 tenants signed up 

3 new businesses started 

World of Platinum marketing company 

2006 Brand developed 

2007 Relaunch of brand at Women’s World Cup of Golf in South Africca 

Sales and distribution agreement with Panda Diamonds 

Retailing in 25 retail outlets across South Africa 

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Case Study 6 

ANGLO PLATINUM IMPROVES LIVING CONDITIONS 

In September 2007, Anglo Platinum unveiled its R365 million accommodation project. This will 

significantly improve the living conditions of 17,568 employees currently living in hostel 

accommodation. During the ceremony, 3,200 newly refurbished double accommodation units at 

Union Mine’s Etafeni Village in Limpopo were officially handed over to the new residents. 

In his address, acting joint chief executive Duncan Wanblad said that the event marked the 

beginning of an ambitious and long-awaited housing project. He explained that the Company’s 

goal was to transform all its hostels across the division into modern single-accommodation units. 

This endeavour, he said, was especially significant in light of the historical legacy of hostels in 

South Africa. The refurbished units provide for greater privacy and come with a living area and 

bathroom facilities. “In terms of the broader housing framework, we are also involved in 

development projects to ensure that we promote home ownership for employees who prefer this 

option.” 

The unveiling was attended by Limpopo MEC for Local Government and Housing, the Honourable 

Maite Nkoana-Mashabane, who said that the project signified a change in government’s housing 

policy, in partnership with the private sector. It is our view that this project will contribute immensely 

to social cohesion and the integration of families. The employees will now live like human beings 

with their fellow workers, without being packed in a hall without any privacy.” 

The MEC said: “We appeal to other mining houses to follow the path and example that Anglo 

Platinum has undertaken. Together, united in action, we will fight this battle to shelter those who 

cannot afford to put roofs over their heads.” 

From these few examples of what Anglo Platinum is doing in the communities in Limpopo 

Province it is evident, contrary to the allegations made by ActionAid, that we are indeed 

living up to the principles of sustainable development and we are not neglecting the 

communities around our operations. 

March 2008 | 

15

The Facts 

Section 3 

PPL – Our side of the story 

PPL Mine, which has been renamed RPM - Mogalakwena section, is located 20 km northwest 

of the town of Mokopane and falls within the Limpopo Province’s, Waterberg District 

(DC36) and Mogalakwena Local Municipalities (one of six local municipalities that makes 

up the district). Adjacent local municipalities include Aganang, Polokwane and Lepele- 

Nkumpi municipalities. The estimated population in the municipality, which is made up 

of 31 wards, is 300 000 2 with an unemployment rate of 48%. 

The present day mine opened in 1991. However, mining by the company Potgietersrust 

Platinum’s Limited first commenced in 1926 and later ceased. Anglo Platinum and its 

wholly owned subsidiaries are the current owners (and have been since 1926) of the 

mineral rights (old order right) over areas marked as “mining license” in Figure 2 3 and 

have applied for new order rights over this same area. 

Figure 2: Map showing the area over which PPL has the legal right to mine. 

2 Based on 2001 census data 

3 In South Africa, the Mineral and Petroleum Resources Development Act, No 28 of 2002 

(MPRDA), was implemented on 1 May 2004, and effectively transferred custodianship of the 

previously privately held mineral rights (old order rights) to the state. Mining companies were 

given up to five years to apply for mining licence conversions to mining rights (new order 

rights) for existing operations. 

16 | 



The mine has operated two open pits, namely Zwartfontein south and Sandsloot. The new 

PPRust north pit is currently under development. The location of these pits, and the 

villages discussed in more detail in the next section, can be seen clearly in Figure 3. 

Figure 3: Map showing the location of the open pits and villages at PPL. Satellite image date October 

2007. 

Whilst Anglo Platinum has the mineral rights over the areas marked in Figure 2 it does not 

own the surface rights. The rights to the surface belong to the government and the Mapela 

Traditional Authority on behalf of the tribe, which is headed by Kgoshigadi Langa who is 

Kgoshigadi (queen) for all the communities that fall within the mineral lease : 

• Overysel 815 LR – Ga Sekhaolelo 

• Zwartfontein 818 LR – Ga Puka 

• Vaalkop 819 LR – Ga Molekana, old Ga Pila and Ga Masenya 

• Sandsloot 236KR – Ga Pila 

The mine has, since 1993, leased certain portions of the farms Overysel, Zwartfontein and 

Vaalkop for the remaining economic life of the mine in return for payment of an initial 

lump sum rental of R1 200 000 (1993 terms) and an annual rental (initially R5 000), 

escalating at 10% each year and currently at R58 000. These lease payments are paid to an 

account of the Local Magistrate Court for the benefit of the Mapela Tribal Authority and 

are based on the agricultural potential of the land. This lease gives PPL the right to the 

surface portions covered by the lease. 

Therefore Anglo Platinum and its wholly owned subsidiary PPL has the legal right to be 

mining within the mineral lease area and obtained these rights through the proper legal 

processes. We find the comments attributed to Richard Spoor on page 30 of the ActionAid 

report which state Anglo Platinum has, “no respect for the principles of law….and 

criminalizes the resistance of the community in order to crush them” highly offensive and 

defamatory. 

March 2008 | 

17

The Facts 

The Story of Ga-Pila 

Anglo Platinum acknowledges that resettlement programmes are extremely disruptive for 

communities and the full impact of relocation is often only felt after the relocation process 

is completed. However, where done well resettlements afford the opportunity to greatly 

enhance living conditions in affected communities. Given the inaccuracies in the 

ActionAid report it is important to tell the full story of Ga-Pila. 

As part of the early planning process for the development of the Sandsloot open pit on the 

farm Sandsloot 236 KR in the mid-1990’s, an environmental impact assessment (EIA) 

study was conducted. The EIA revealed that Ga-Pila community, which occupied 553 

hectares of agricultural land, would be exposed to safety and significant environmental 

impacts including blasting vibrations, noise, dust and possible decrease in groundwater 

yields. These findings led the mine to consider other mining alternatives. None of these 

alternatives mitigated the significant impacts predicted in the EIA and therefore a decision 

was taken to explore the possibility of relocation. 

Kgoshigadi Langa was approached by PPL to trigger discussions on relocating the Ga-Pila 

community to Sterkwater. These discussions lasted many years and involved extensive 

consultation with the communities and traditional leaders and were finalized in 2001 

when the Ga-Pila community agreed collectively to relocate. 

The relocation involved 706 households as well as infrastructure and services, including 

water reticulation supply, electricity, new schools and churches. The amount spent on the 

relocation (in 2003 money terms) was R192 million. This relocation process was guided by 

the then World Bank Resettlement guidelines and included the construction of 706 new 

houses; roads; eight shops; two churches and two schools; a clinic and a crèche; and bulk 

infrastructure over land covering 828 hectares (Figure 4). 

Figure 4: Pictures of some of the general infrastructure at Ga-Pila 

A typical house in Ga-Pila 

Ga-Pila community centre financed by PPL 

Stormwater drains being inspected at Ga-Pila 

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An additional R20 million was set aside for community development and poverty alleviation 

and a further R5 million was provided to assist the community to fund development 

projects. Each household was paid an amount of R5 000 as a settling in allowance intended 

to pay for incidental costs of moving house. More recently a further R8 million was made 

available by PPL for the construction of a community hall (Figure 4). 

Once construction was completed on the new Ga-Pila, more than 7000 people willingly 

moved, with no forced evictions (contrary to ActionAid insinuations on page 17). As 

families moved across to their new homes, they were given the opportunity to salvage all 

useable items from their houses including doors, window frames and roofs. This made 

the dwellings unsafe for habitation and for this reason, along with the need to prevent 

illegal squatting their old houses were demolished (as mentioned on page 19 of the 

ActionAid report). Some 7 000 people who moved represent 98% of the affected community 

freely agreeing to the resettlement. It is unclear what definition of democracy ActionAid 

uses to conclude that “the community” was against the resettlements. 

Support for the new village received high ranking government approval and the new 

Ga-Pila in Sterkwater was officially opened by the then Premier of Limpopo Province, 

Ngoako Ramatlhodi at a ceremony attended by the community. 

Despite the majority of the community having moved and with the agreement of the 

traditional authorities and local government, 27 households have refused to move, 

including Elizabeth Mogale, Rose Dlabela and Abel Mogale 4 amongst others. 

Anglo Platinum has taken a decision not to forcibly remove these families and engagement 

is continuing. 

Essentially these remaining 27 households have chosen to live where they live even 

though their new houses have been provided and remain vacant. 

From Anglo Platinum’s sources on the ground it is our submission that the reason these 

families have chosen to remain behind is that they have been promised, by external 

parties, including lawyers, that if they remain behind they will receive greater financial 

compensation than that received by those who have moved to new houses. 

4 These people’s stories are told in the ActionAid report on Pages 17 – 19. 

March 2008 | 

19

The Facts 

Anglo Platinum and Water Management – Nitrates in the Water 

Anglo Platinum has an extensive on-site surface and ground water monitoring programme. It 

does not however sample all water sources used by the surrounding communities as this is the 

responsibility and function of the Department of Water Affairs. 

In the vicinity of the tailings dam complex, the mine has 17 monitoring boreholes. Their information 

is sent to an independent geo-hydrology specialist for interpretation and is submitted in an annual 

report to the Department of Water Affairs and Forestry. 

Excessive nitrates concentrations are a common form of water pollution, including in areas with 

no history of mining. The most common causes include seepage of untreated sewage and poor 

application of agricultural fertilizers. Water results around the mine have shown slightly elevated 

levels of nitrate in close proximity to communities and this is attributed to sewerage run-off and 

pit latrine systems, as these communities have no formal sewerage systems. Anglo Platinum is 

puzzled on what basis ActionAid’s water specialist dismissed “raw sewerage seeping into 

groundwater” (Page 18 Box 4) as a basis for the elevated nitrates. 

A mass-transport two-dimensional finite element water model is employed for modeling the risk 

of contamination from the tailings dams. Results show that there are slightly elevated 

concentrations of nitrates and sulphates immediately adjacent to the tailings dam. The groundwater 

model shows that these elevated concentrations will not migrate towards Ga Molekana. This has 

been confirmed by an independent geo-hydrologist. Should the mine be found to be responsible 

for any water quality problem we would of course take all appropriate steps to address the 

situation. 

Anglo Platinum would welcome the opportunity to get the full details of exactly where samples 

were taken by ActionAid so that if there is indeed a water problem it can be addressed. Although 

we are not sure exactly where the ActionAid water samples were taken, we have already 

commissioned additional sampling in the areas mentioned by ActionAid to confirm if there is 

indeed a problem or not. We will make results publicly available and if there is a problem we will 

raise this immediately with the appropriate government agencies. 

The Ga Puka and Ga Sekhaolelo Story 

The need for the move 

The Ga Puka and Ga Sekhaolelo villages are located in the northern portion of the PPL 

mineral lease area (Figure 3). The mine began planning for the PPRust north pit in the mid 

1990’s. An Environmental Impact Assessment (EIA), guided by the environmental 

management programme (EMPR), began to determine the potential social and 

environmental impacts from the proposed open pit at PPRust north. From the mine plan 

and EIA process specialist studies showed that Ga Puka and Ga Sekhaolelo communities 

would need to be relocated to mitigate the safety and environmental risks posed by mining 

PPRust north. When no viable alternative to resettlement could be found, the mine began 

an extensive consultation process to seek approval for resettlement. 

Typical existing houses in Ga Puka and Ga Sekhaolelo are shown in Figure 5. 

20 | 



Figure 5: Typical houses in Ga Puka and Ga Sekhaolelo 

The consultation process begins 

Since the consultation process has been so extensive and public Anglo Platinum is puzzled 

as to how ActionAid could claim that the communities are being forced to relocate. The 

major milestone steps in this consultation process were: 

In early 1998 PPL engaged with the Mapela Tribal Authority, under the leadership of the 

Kgoshigadi Langa on the relocation of the two communities Ga Puka and Ga Sekhaolelo. 

• On 24 October 1998 the Kgoshigadi requested that two Relocation Steering Committees 

be formed to deal with the relocation of the Motlhotlo village (refers to Ga Puka & Ga 

Sekhaolelo). 

• The local Headmen (Puka and Sekhaolelo) issued a public notice inviting the 

community to a meeting to elect ten (10) people for Ga Sekhaolelo and sixteen (16) 

people for Ga Puka. 

• A community meeting was duly convened and these Relocation Steering Committees 

were formed. 

March 2008 | 

21

The Facts 

• The task of the Relocation Steering Committee was to negotiate with the PPL mine on 

the relocation process. 

• During 13 October 2002, the Kgoshigadi called a general meeting, which was overseen 

by officials of the Department of Land Affairs, and at which the relocation framework 

was discussed. The community was overwhelmingly in favour of the proposed 

relocation because of the greatly superior housing, infrastructure and facilities 

offered by way of compensation. 

• In view of the fact that the two Relocation Steering Committees could not enter into 

binding legal agreements or receive payments. It was suggested by the community 

that the Section 21 Companies be formed to fulfill this obligation 

FACTS ABOUT THE SECTION 21 COMPANIES 

The two Section 21 companies set up for the relocation operate as 

independent entities, with a set of Memorandum and Articles of 

Association. The members of the Section 21 Companies appointed the 

initial Directors of the Section 21 Companies. The members may also 

appoint/remove Directors at a general meeting. 

Any person can become a member of the Section 21 Companies. The 

community members have similar rights to those of ordinary shareholders 

in an ordinary company with respect to the Board of Directors 

The community is entitled to understand and assert its legal rights 

throughout the resettlement process and that is why the community had 

access to a legal advisor when the community relocation steering 

committees were first established in October 1998 and subsequently 

through to the establishment of Section 21 Companies. 

Anglo Platinum took a principled position to pay for all costs of consultants 

required by the community on all issues arising out of the relocation 

process. This includes legal consultants, environmental experts as well 

as blasting consultants. Members of the Section 21 companies receive 

a stipend . 

• In February 2003 the two Relocation Steering 

Committees were converted into the Ga-Puka 

Relocation and Development Association 

Incorporated under Section 21 and the 

Ga-Sekhaolelo Relocation and Development 

Association Incorporated under Section 21 

respectively. 

• These two Section 21 Companies were formed 

with the sole objective of negotiating and 

driving the relocation project. 

• The two relocating communities, Ga 

Sekhaolelo and Ga Puka, were given an option 

of five farms, Armoede, Rooibokfontein, 

Mooihoek, Groenfontein and De Hoogedoorns. 

The communities themselves opted 

for both Armoede and Rooibokfontein, given 

their historical connection with the farms 

following a forced removal by the Apartheid 

government in the 1940s. 

• During 13 October 2002 and July 2005 the 

various agreements, as mentioned above, 

were negotiated through consultations with 

the community at more than 300 community 

meetings, and the final agreements were then ratified and adopted by both the Ga 

Puka and Ga-Sekhaolelo Section 21 Companies in 2005. The head of each household 

signed an agreement in which the terms of his/her relocation were agreed together 

with the size, and location of the house to which he / she and the family living in the 

present house would be relocated. 

There continues to be a comprehensive consultation process for the relocation. A Anglo 

Platinum acknowledges that there are small factions within the community that are 

dissatisfied with the relocation processes for various reasons. These are, inter alia: 

• principle differences between the “like-for-like” model used by Anglo Platinum versus 

community expectations that they should be directly “better off” financially post 

relocation; 

• expectations in the community that they should hold an equity stake in the mine; 

22 | 



• some younger members of the community, who previously did not own houses and 

lived with their parents, now wanting Anglo Platinum to provide them with houses in 

the new villages. 

Figure 6: Signing of agreements with the community in 2005. 

It simply cannot be understood how Richard Spoor in the ActionAid report can conclude: 

“Anglo Platinum has signed agreements with community representatives and each and 

every homeowner (957) on an individual home owner’s agreement. The agreement includes 

the homeowner’s approval to relocate to the new villages built on the farms Armoede and 

Rooibokfontein. It is true that documents have been signed by individuals authorising their 

relocation. But the term ‘agreement’ implies a process of negotiation and informed consent, 

whereas with the Motlhotlo relocations – and indeed with other relocation agreements 

outlined in this report – villagers say they were presented with a document to sign with 

compensation rates unilaterally determined by the mine. It is easy to see why villagers, many 

of whom are illiterate, would sign. Some feared they would be left without a home and basic 

services if they did not relocate. The Motlhlotlo Development Committees have pointed out 

that, ‘many people are so desperately poor that they will accept a crust of bread if that is 

what it takes to keep their families alive. This makes them vulnerable to being cheated and 

exploited ‘”. There is clear documentary evidence that proper consent has been achieved, 

and it is simply inconceivable that 84% of the community would already have willingly 

relocated if there was any truth in the allegations that there is widespread opposition. 

March 2008 | 

23

The Facts 

FACTS ABOUT CONSULTATION – FREE, PRIOR INFORMED CONSENT 

ActionAid claims “communities have been placed under huge pressure to relocate”. Agreements 

signed by individuals with the company on the relocation have not, according to ActionAid’s 

research, sought the “free, prior and informed consent” of villagers. However, the following steps 

were taken to ensure each homeowner understood and was able to make, “free, prior and informed 

consent”. 

1. Local professional consultants who could speak local languages were appointed along side 

firms experienced in relocations. This was done to ensure that the whole consultation, 

negotiation and planning process was made very clear to the community, to optimize 

communication and ensure sensitivity to local community issues and traditions. 

2. Training and deployment of a community operational team: fourteen local community members 

were selected and employed to act as Architectural Assistants and later Project Management 

Assistants. Their primary role was to interface with the community and individually with 

homeowners to explain issues related to the relocation as well as explain what was being 

offered to individual homeowners. i.e. house plans, their rights and so on. They also provided 

feedback to the Project Management on such things as house layouts. 

3. A separate scoping EIA process, which included extensive consultation, was followed solely for 

the relocation. (A positive record of decision cannot be achieved from government without 

proving a pattern of consultation with the community). 

4. Construction of show houses: physical show houses and mock-ups of different types of house 

finishes were built so that the Community and individual homeowners could see what was 

being offered. 

5. One-on-one agreements were developed for each homeowner: These specified all aspects of 

the new house and monetary compensation. These agreements were scoped in a process with 

the homeowner. First the audits (two) of existing households were done and signed off by the 

homeowner and the Nduna (headman), second “Red Files” were developed detailing the first 

proposal to be presented to homeowners, thirdly “Green Files” were developed incorporating 

homeowner comments, and finally the “Green Files” were signed off by each and every 

Planning, Consultation & Approvals 

homeowner individually. Each stage involved the Community Operational Team facilitating. 

Oct-98 

Jul-99 

Initial Consultation & Communities’ Election of Relocation Committees & Legal Advisors 

2003 Formation of Section-21 Companies 

First half 2002 Appointment of Professional Team 

02-May to 19-Jul-02 

13-Oct-02 

19-Jun to 30-Aug-02 

19-Aug & 26-Sep-02 

30-Sep & 15-Nov-02 

Consultation iro Scoping & EIA & 2 Audits 

Land Holders’ Resolutions & Site Approvals 

Draft Scoping & EIA Reports 

Public Review of Scoping & EIA Reports 

Final Scoping & EIA Reports 

DFED Positive RoD on Scoping & EIA 24-Mar-04 

Relocation Action & Environmental Management Plans 

15-Jul-02 to 18 Aug-03 

Finalization & Approval of Town Planning Layouts 18-May-04 

DFA Appl’n for Land Use approved by DLG&H 

Services Agreement with Municipality 

06-Jul-04 

19-Jul-04 

Jun-04 to Dec-05 

Homeowner One-on-one Agreements 

J a n - 9 8 J a n - 9 9 J a n - 0 0 J a n - 0 1 J a n - 0 2 J a n - 0 3 J a n - 0 4 J a n - 0 5 J a n - 0 6 

Gantt Chart showing key milestone dates of consultation 

10 

24 | 



Continued Patterns of Engagement 

The project team monitoring the relocation hold a number of on-going consultation forums: 

• With recognized community leadership in terms of all relocation matters; 

• Fortnightly meetings with communities’ legal advisors 

• Weekly communication meetings with the Community (Kgoros) 

A weekly Kgoro meeting in progress 

• Traditional Authority meetings with Kgoshigadi Langa and headman for each village 

• With homeowners yet to move invited regularly to inspect progress on their homes 

• Active in resettlement process by helping homeowners to move 

• Four Community Liaison Officers have been employed from the community to ensure effective 

community liaison 

The move commences 

The resettlement initially started on 29 May 2007 as the new houses were completed (See 

Figure 7). However, a faction from the Community (led by the Motlhotlo Development 

Committee (MDC)) protested by blocking the public roads with stones and groups of 

chanting protestors. This prevented people from leaving or entering the village by vehicle 

– including those who wanted to go to work, school, as well as those who wished to relocate 

on that day. The police were called by members of the Community who felt intimidated 

and restricted by this action. The police deemed this action to be unlawful and requested 

that the mine provide a dozer to assist in clearing the roads. When police proceeded into 

the village to unblock the roads they were assaulted by protestors who threw stones at 

them. The police responded by firing rubber bullets which led to the unfortunate casualties 

described in ActionAid’s report. Anglo Platinum certainly does not support unprovoked 

or unwarranted or disproportionate police action. 

So as not to escalate the situation on the ground the police eventually got agreement from 

all parties that the relocation would not continue and that all parties would come to the 

table to discuss their differences. This was done and led to the formation of the Task Team 

which included members from the MDC, Section 21; and various government and nongovernment 

bodies under the leadership of the Premier’s Office. The Task Team undertook 

to investigate various recorded grievances from the MDC, and once sufficient progress 

was deemed to have been made, the full Task Team, gave the go-ahead for voluntary 

relocation to commence on 11-Jul-2007. Subsequently a small group of protestors have at 

times again tried to derail the process, however, their actions have not been supported by 

the majority and voluntary relocation has continued successfully. 

March 2008 | 

25

The Facts 

There was an attempt to block the road by a very small group of people when the 

resettlement started again in July. However in a very powerful and moving demonstration, 

more than 300 members of the community started to walk alongside the removal trucks, 

clearing stones from the road that had been placed there by this very small faction. This 

demonstrated that the large majority of the community is in favour of the relocation. 

Figure 7: New houses completed for occupation 

As of the end of March 2008, 800 of some 956 families had voluntarily moved into their 

new houses. There have been no forced removals. 

As there are still some families who have not yet moved from the old villages, the mine 

continues to provide water, grazing fodder and to maintain the roads. This will continue 

until the relocation is complete (Figure 8). 

26 | 



Grading of roads, supply of 

water and cattle fodder ongoing 

during project implementation. 

Figure 8: On-going service provision and maintenance in the old village 

How was compensation calculated 

World Bank guidelines state that “owners of houses and structures who are recorded in a project 

development area prior to the official cut-off date should preferably be compensated in the form of 

asset replacement for full or partial loss of buildings/structures. Modern building materials should 

be used if original materials are not available or feasible. As second preference, cash payments 

should be made at replacement value where replacement is neither practical nor preferred.” 

According to Golder and Associates, the specialist consultants on the relocation project “based on 

past involuntary resettlement studies, the range for a settling in allowance for households in a rural 

environment is between $200 to $300 per household. The amount that Anglo Platinum envisaged 

amounted to approximately $1 850 per household (2004 terms), at an exchange rate of R6.50 to 

the US$. This amount is considered to be excessive. A fair amount would be in the order of $500 

per household” Following extensive negotiations with the community Anglo Platinum eventually 

settled on an amount closer to $3000. 

Following World Bank guidelines, we have focused on improving the physical and functional assets 

rather than providing financial inducement. Homeowner’s houses; the village infrastructure (water 

& roads etc); the communal amenities (schools, clinic, etc); and the ongoing means of survival 

(shops, farms, businesses, etc), have all been substantially improved. This is clearly evident from 

any form of site inspection. It would have been far easier and cheaper to replace what previously 

existed without improvement, and then to hand the saving on to the community – however, this 

would be against World Bank guidelines. 

Furthermore, Anglo Platinum is now making the full R 20 000 settlement allowance available to 

homeowners up front and is not doing a split payment as suggested by ActionAid. 

March 2008 | 

27

The Facts 

Figure 9: The old Jacob Puka School (above) and the new school at the relocated village 

Ensuring the relocated communities remain sustainable 

Anglo Platinum is not in anyway neglecting the relocated communities and continues to 

play an active role. In conjunction with the Mogalakwena Local Municipality Anglo 

Platinum has agreed that local community cooperatives will be formed and made 

responsible for rendering all municipal services in the newly relocated villages thereby 

creating jobs. Anglo Platinum will provide the training, initial incubation and start-up 

funding. This model has been agreed with the Municipality which is working on a business 

plan. 

Furthermore, the communities have also been allocated more land than they previously 

had. Beyond traditional agriculture, it is envisaged that they will engage in game farming 

on the other donated farms. Additionally, the mine also has a policy of local employment, 

local sourcing of materials and supplies within a 50km radius. Of the more than 4 200 

people employed on the expansion project, 1 800 people come from the local communities. 

Preferential employment has been given to members of these communities. For the last 

three years, unemployed community members with potential to be developed have been 

given free education as a precursor to technical training to raise their skills. At present 

there are 57 non-employees undergoing such training in the education training centre. 

Mining operator and plant operator learnerships and academies have been run to ensure 

the required skills will be available in the area when mining operations expand. To date, 

150 unskilled community members have completed learnerships. Several community 

members have been sent to bridging courses at university. Twenty-four tertiary bursaries 

are being supported. 

28 | 



During the run up to the project implementation, Anglo Platinum teamed up with the 

Department of Labour and successfully ran skills training in bricklaying, plastering, 

painting, plumbing and carpentry skills. As a result more than 1 000 people were employed 

on the housing construction project at its peak. The project also commissioned 55 000 

bricks-per-day from the brick manufacturing plant. The community manages this facility 

and sells bricks into the project. This plant will be able to sustain its employees in the 

future in supplying bricks to the construction market and now has been handed over to 

the community as a going concern. 

Figure 10: The brick making facility established in conjunction with the community 

Figure 11: Families in their new homes 

March 2008 | 

29

The Facts 

The Ga Chaba Story 

Ga - Chaba is located north west of the PPRust north pit and is marked on the map in 

Figure 4. The EIA that was conducted for the PPRust north pit showed that the safety and 

environmental impacts on the community at Ga Chaba could be mitigated through 

management controls and therefore there was no need to relocate this community in the 

first phase of the PPRust north project. 

Issues at Ga - Chaba are complex. Residents have witnessed the benefits that the Motlhotlo 

and Ga Pila community have received from Anglo Platinum, such as new modern houses 

and feel that they are entitled to similar benefits although the impacts are far less on them 

(Alluded to on Page 34 “. . . Ga Chaba villages have not been offered the option of being 

resettled elsewhere . . .” This is leading to tensions within the community and an increase 

in the number of complaints brought to the mine in the hope that a decision will be taken 

to relocate them. 

Individuals from the Ga-Chaba community have claimed traditional rights, such as 

grazing and ploughing rights, on the farms that will be affected by the mine expansion. 

Seven court applications were brought against the mine in 2006 by Richard Spoor allegedly 

acting on behalf of individuals in the community. Three of these claims have been 

dismissed by the court as being unfounded and a fourth has been delayed indefinitely 

awaiting further papers to be filed by Richard Spoor. To date these papers have not been 

filed. 

MINE BLASTING 

The following facts are pertinent to mine blasting: 

• Blasting usually occurs every fortnight; 

• Blasting is tightly regulated through the Department of Minerals and Energy, and the timing of 

every blast is communicated to the community through the Minerals Committee; 

• Blasting is limited to certain times of the day (i.e., not during school hours); 

• Anglo Platinum engineers monitor each blasting process; 

• Regulations require that no blasting takes place within 500 metres from any residential 

structures and Anglo Platinum fully complies with this requirement 

• To further ensure safety, Anglo Platinum procedures involve temporarily moving any residents 

within 1000 metres during the hours of blasting; 

• The blasts are designed to minimize vibration and ground vibrations have not exceeded 

12.7mm/s which are the international US guidelines; 

• Noise generated via blasting is to be kept under 135dB blast, and current operations have not 

exceeded that level; 

• Several technical surveys for Anglo Platinum have been conducted by independent engineers 

to determine whether blasting has damaged nearby housing. None of these studies have 

concluded that blasting has been responsible for any damage to nearby houses. Our current 

process monitors nearby structures for such damage. 

• If any such damage were to occur, the process currently in place allows homeowners to register 

a claim. 

30 | 



Different mines, similar story and facts 

Twickenham Mine is located within the Limpopo Province, Greater Sekhukhune District 

Municipality and the Tubatse Local Municipality. 

Figure 12: Map of the Twickenham mine lease area 

There are no fewer than nine traditional authorities responsible for the communities 

around Twickenham living in the following villages 

• Ga Phasha 1 400 

• Ga Mashabela 3 500 

• Magadimane Ntweng 4 500 

• Swazi Mnyamane 1 800 

• Mashishi 3 300 

• Mampa 1 200 

• Ga Makgopa 1 200 

• Phasha- Makgalanoto 3 400 

• GaKgwete 3 300 

The community of Mogabading was relocated from the lease area to Mecklenberg A to 

make way for mining infrastructure. In regard to the community of Magobading, the 

residents were resettled with improved housing and compensation after a lengthy 

consultation – so they were not ‘forced off their land’. Faced with other socio-economic 

challenges, the municipality, had significant capacity constraints, and hence did not 

conduct the routine maintenance that was agreed as part of the resettlement package. 

March 2008 | 

31

The Facts 

This led to a subsequent deterioration in services. Anglo Platinum has, however, since 

made provision for putting the maintenance backlog right in conjunction with the local 

municipality and is establishing a community enterprise to undertake ongoing 

maintenance sustainably. Anglo Platinum has appointed an engineering firm, Infrastruct, 

to upgrade the road and storm water infrastructure at Mecklenburg. This work is being 

done in conjunction with the Magobading and Greater Tubatse Municipalities who will 

ultimately become responsible for on-going maintenance and services. 

Figure 13: A typical house at Mecklenburg 

32 | 



Modikwa Mine 

Modikwa falls within the Greater Tubatse Local Municipality (GTLM) which falls within 

the jurisdiction of the Sekhukhune Cross-boundary District Municipality (SCDM). The 

GTLM is located north-east of Middelburg, north-west of Nelspruit and south-east of 

Polokwane. The area is a cross boundary municipality as one half is situated in Mpumalanga 

Province and the other half in the Limpopo Province. 

Map of the Modikwa 

Modikwa Mine is a non-managed Anglo Platinum joint venture with African Rainbow 

Minerals (ARM). Modikwa is not an Anglo Platinum operation. It is a 50-50 joint venture 

between Anglo Platinum’s Rustenburg Platinum Mines Ltd and ARM Mining Consortium 

Ltd, and ARM manages the mine. Seven host communities around Modikwa own an 

effective 8.5% in the mine, and will share in its profits. In addition, the communities 

March 2008 | 

33

The Facts 

benefit directly from millions of rands spent annually on socio economic development 

projects within the communities. 

Modikwa has been in operation since 2001 and from 2002, the mine has spent R15,6 

million within the communities on projects including education, agricultural development 

and water provision. Among the seven host communities, made up of some 70 000 people, 

there are a number of individuals who are unhappy with the communities’ interest in the 

Modikwa mine. These individuals purport to act on behalf of “communities” where no 

mandate exists and where self interest is pursued. 

The mine and the communities interact through two Section 21 companies, formed to 

represent the interests of the seven host communities and to hold their shares in the mine. 

These structures were negotiated between ARM and the several host communities. The 

communities have each elected 10 directors to the companies, and the 7 local kgoshis 

(Chiefs) also serve as directors. The 77 representatives have an elected executive committee 

of 14 members (two per community) to facilitate dialogue. The mine meets regularly with 

the office bearers to discuss and resolve matters of concern to all parties. 

It is important to note that there are no open pit operations at Modikwa and all mining is 

done underground. The mines infrastructure has limited impact on the surface and no 

significant impact on the farming and other activities of the host communities. No 

relocations have been necessary or took place when the mine was established, although 

the host communities are settled largely within the Modikwa mining area. 

There have been a few incidents involving the local community and these are discussed in 

more detail. 

Exploration interruptions 

The mine had permission from the Department of Minerals and Energy and the local 

traditional leadership to conduct exploration on the farm Onverwacht. A faction in the 

community, which does not recognize the traditional leadership, began to intimidate the 

exploration crew. The mine obtained an interim interdict against two members of the 

community who threatened to disrupt exploration activities. 

Intimidation and threats continued and the South African Police were informed. An 

unfortunate incident occurred on 11 November 2006 when the South African Police 

Services used “bird shot” to disperse people from the Sehlaku village who were threatening 

mine employees and disrupting the exploration programme. Four members of the 

community were injured as they fled and were taken to hospital and a number of arrests 

were made. Although Anglo Platinum does not condone police force the company did 

have the legal right to be conducting exploration and the police were ensuring the rule of 

law was respected. 

The mine is continuing to engage with community leaders in an attempt to improve 

relations and ensure legitimate issues are addressed and resolved. 

34 | 



Employees abducted 

On 7/9/2007 the Mine Ventilation Officer and Protection Services Manager and two mine 

consultants were abducted by community members and accused of trespassing when 

they were going about their duties at the old Pedi shaft next to the Sehlaku village. The 

Protection Services Manager made contact with the police and stated that they had been 

abducted. The first police detective to arrive in the community was robbed of his firearm 

and then assaulted by the community, before the other police officials arrived. Four 

members of the community (including Chief Isaac Kgoete) were arrested and charged 

with kidnapping, intimidation, assaulting a member of the police force and for causing 

public violence. 

Despite these incidents the mine is continuing to engage with community leaders in and 

around Modikwa in an attempt to improve relations and ensure legitimate issues are 

addressed and resolved. 

March 2008 | 

35

The Facts 

Final comments 

ActionAid say they tested water which showed that three months ago -- and possibly six 

months ago -- there was a serious health risk to children. Why has this knowledge been 

deliberately withheld from the public water supply authorities or the nearby schools 

Why did they not disclose the details immediately Are ActionAid aware their results are 

inaccurate or grossly exaggerated, or are they more interested in making headlines than 

protecting human health 

Nitrate pollution of fresh water sources is common around the world, and is typically 

caused by poor agricultural practices or inadequately-treated sewage. What analytical 

work did ActionAid undertake to discount the normal sources of nitrate pollution (which 

in the area could have included pit latrines) before alleging that mining was responsible 

In addition to some 7 000 Ga-Pila residents who willingly moved, it is estimated that 

around 8 000 have willingly relocated to their new homes at the Motlhotlo community, 

again with not a single eviction. They did this because of a combination of: better and 

bigger houses; the fact that many squatters and families with only customary title have, 

for the first time, been able to get legal proof of ownership; access to greater areas of better 

quality farmland; and massive improvements to community infrastructure in the villages. 

Most of this has been financed by Anglo Platinum. We know of very many villagers who 

are delighted with their new communities. Why were their views ignored 

Despite strong economic growth in recent years, unemployment and poverty levels 

remain high in South Africa. Platinum mining and refining provide good incomes to 

hundreds of thousands of South African families, and mining is one of the main engines 

of the country’s economy. ActionAid’s demands seem to include requiring unanimous 

community support before mining (or, presumably, any other development) can proceed, 

a level of support that is not required in developed economies for example. Under these 

circumstances it is clear that far fewer mines, factories or infrastructure projects could 

proceed. As a development organisation, what alternative forms of livelihoods does 

ActionAid believe could be supplied to compensate for the inevitable loss of mining jobs 

that would entail 

36 | 


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