JOHANNESBURG (miningweekly.com) – The Black Business Council (BBC) has come out in defence of Kalagadi Manganese after opposition party the Democratic Alliance (DA) expressed concern over the possibility that the Public Investment Corporation (PIC) had provided funding to the integrated manganese developer owing largely to “political connectedness”. 

This came after DA Shadow Minister of Finance David Ross announced on Sunday that the party had requested the Public Protector to investigate “the use of pensioners money to bankroll worrisome investments”.

In the announcement, he asserted that the PIC had bought what was potentially an over-priced share of the mining company from ANC-connected bigwig and Kalagadi Manganese executive chairperson Daphne Mashile-Nkosi.

Responding to the allegations in a statement on Wednesday, Mashile-Nkosi said her company took a “dim view to the baseless and nefarious accusations”, stating that, contrary to what had been communicated [by the DA], Kalagadi was awaiting a decision by the PIC on its application for funds to buy ArcelorMittal’s 50% stake in the company.

“The baseless allegations by the DA demonstrate [a] lack of exposure [to] and understanding of the advancement made by women in business, and black women in particular.

“As a law-abiding citizen of this country and a businesswoman, I reserve the right to apply for funding, regardless of my business or political affiliation,” she commented, requesting that the DA disclose the source of its information regarding the project approval.

Kalagadi was currently developing a three-million-tonne-a-year manganese operation in Hotazel, in the Northern Cape, with plans under way to build a smelter at the Coega industrial development zone, in the Eastern Cape.

Its flagship manganese project, valued at R7-billion, recently received a R2.2-billion loan from the African Development Bank and additional funding of R4.2-billion in the form of loans from shareholders, including Mashile-Nkosi.  

BBC CEO Xolani Qubeka said on Wednesday that his organisation described the [accusations] levelled against Kalagadi as “unfounded and based on speculative newspaper reporting”.

“Such misreporting of facts, including false information, fuels a culture where black industrialists are vilified for doing business in the country, especially when they are targeting big projects on their own,” he commented.

Mashile-Nkosi took further strong exception to the insinuation that she and Kalagadi had benefitted from the PIC investment owing to her alleged political affiliation.

“I have worked hard to establish my business and had to overcome the common challenges that face businessmen and women who are trying to eke out a living.

“I am confident that my reputation will precede these scurrilous accusations and that the public will see these unfounded allegations for what they really are – a concerted and malicious campaign aimed at scoring cheap political points,” she concluded.