TORONTO (miningweekly.com) – South Africa-focused project development Ivanhoe Mines on Monday lashed out at journalists at one of Canada’s premier national newspapers for publishing a story on Friday alleging the company used illegal coercive tactics to obtain the necessary permits for its Platreef polymetallic mine, near Mokopane, on the northern limb of the country’s mineral-rich Bushveld Complex.
Senior management of TSX-listed Ivanhoe and its subsidiary, Ivanplats, published an open letter challenging The Globe and Mail’s editor of the Report on Business Paul Waldie and Africa correspondent Geoffrey York, charging the cover story was “blighted by false allegations and misrepresentations, and gratuitous exaggerations”.
Among the examples cited in the article, two men, including an official from Ivanhoe, told an 82-year-old villager to give up her land or stand to lose her monthly pension of about $450/m.
In the open letter, the companies point out that they were never given an opportunity by The Globe to comment on this specific allegation before it was published.
The letter also stated: "For the record, the company now does challenge and deny the allegation presented by The Globe concerning use of what would be an unacceptable negotiating tactic. It already is a matter of record that well known Platreef critics previously have made similar allegations of pressure tactics as a ploy against other business entities, which also have been unfounded."
The story also alleged that Ivanhoe used “hardball” tactics against the South African government when it announced that it wanted to initiate consultations on staffing with the labour unions, which would have included a review of alternatives to layoffs in order to conserve cash resources, while waiting on South Africa’s Department of Mineral Resources (DMR) to execute its mining permit.
Ivanplats pointed out that it had been maintaining its Platreef workforce at full pay even though the workers had not been able to work for four months because the mining right had not been activated.
"This was not some kind of 'hardball tactic', as The Globe falsely alleges. South Africa’s mining law requires that companies also inform the relevant government department of intentions to initiate proceedings that could result in layoffs. There is no factual basis for The Globe’s mischaracterisation of the company’s conformance with this statutory process as an ultimatum to government."
“…parts of the story serve as a soapbox for a coterie of dedicated critics, some of whose self-serving motivations curiously are ignored,” the companies said.
Ivanhoe had in September finalised a BEE deal, giving 20 local communities a 26% interest in the $1.7-billion project, which paved the way for the DMR to execute a mining right for the Platreef project in November.
After restarting site preparations for the $1.7-billion project, work was marred by several incidents in which certain locals even clashed with police.
Ivanplats had declared “the project would not be held to ransom by those who advocate violence, intimidation, disruption and disinformation, and will remain uncompromised by corruption”.