GOLD AND DIAMONDS BUILT A COUNTRY, PLATINUM...

South Africa was built from the proceeds of the Gold rush and the Diamond business that followed. But what has Platinum, a much rarer metal and unique in mineralised concentration in SA done for this country and its indigenous communities, other than divide a nation and feather the nests of the ruling nouveau riche.

Since 2004, foreign companies have been falling over themselves to get access to these scarce resources at any cost, paying over substantial premiums of investor funds to buy in stakes of what they often cannot legally obtain on the open market. Thus the real value of BEEs has been one of fixers for foreign investors rather than protectors of ruralised fellow countrymen.

The shooting of workers who dared to stand up to UK miner Lonmin Plc, was met with a  bloody outcome and outrage from the rest of the world.

Where was Lonmin´s recently crowned BEE partner Cyril Ramaphosa? What was his commitment and obligation as a BEE partner, what is his performance obligation to the local HDSA´s as their empowerment principle? What does his connectivity guarantee the mining companies? How many mining companies can he possibly be given special entry terms into? Why would the banks be so keen to finance him as a BEE third party in favour of a vehicle set up for the direct benefit of the Bapo community?

In short, what makes him more empowered than those rural communities on whose land Lonmin is mining.

Some months ago we tweeted messages to CNN about the underlying discontent of historically disadvantaged and displaced communities known as (HDSA) of which " every would be investor" should first enquire about before investing in South Africa. It´s the same as knowing the protocol when you meet with royalty or the dress code when you visit a country like Saudi Arabia and so forth.

The only feedback we saw on CNN was an advertorial by Robyn Curnow interviewing Mark Cutifani from Anglo Gold at the up market Westcliff Hotel with the view of a well organised upper class suburb in the background.

This while there was a simmering buildup further afield on the Western Limb battlefields overlooking mine headgear and squalid squatter shanty towns where the topical issues appear to have been too hot to handle without a sundowner in hand.

Then we see Robyn again with another soft interview on one of the most popular drinks found all over the world and which needs little introduction, the wonderful and ubiquitous Rooibos Tea. (even this product enjoys more beneficiation than PGM´s which are sold as raw material - but that probably escaped her.)

Before we started The Zero Some Gain we approached BBC´s Panorama to do a story on HDSA´s, their lack of inclusion in the worlds richest platinum fields and in fact their blatant exclusion thanks to selective BEE choices like Ramaphosa. To date not even an autoreply or a "thanks for your email from a do not reply to this email address" from BBC Panorama.

Having said that about the BBC investigative unit, their new team did however join in the rush with CNN to the unfolding TV spectacle at Marikana, camera´s pointing at people holding traditional weapons.

As the CNN camera zoomed in on the largely traditional weapons Nkepeli Mabuse was quick to divert the  emphasis on  two people who had been HACKED to death giving the protesters more reason to doubt the true agenda of the likes of CNN.

The BBC coverage seemed more balanced as they the (BBC) also exposed the filthy squalor in which the migrant workers have been forced into. This on the doorstep of the third largest platinum miner in the world, Lonmin Plc.

But of course such attention to the root causes requires real investigation and long hours of researching while the cameras aren´t rolling. Sensational coverage is a far easier job than actually dispatching a crew to explain the causes and consequences.

The BEE partner concept has become a feeding frenzy for local banks who derive exceptional fees from loans and investments into BEE consortium's. Investec has been one the main catalysts for these BEE investments, keeping the HDSA´s short with no funding and to curry favour with so called connected black empowerment.

Indeed Investec is Mr Ramaphosa´s main backer and this is a relationship only likely to grow.

Then  there is Tokyo Sexwale / Mikki Xayiya grouping,  another one of those so nicely empowered and soon to add a media outlet to its clutches. As we keep asking. Where is the flowback from these accumulators of other peoples wealth and what are their obligations to communities?

 In 1994 the issue of actually restituting stolen land was a popular theme in the election which the ANC relied on and Nelson Mandela kept his promise to the people, by urging them to actively claim back their land.

However after Mandela left office at the end of the 90`s the party began with the introduction of BEE´s through the mining charter as a partner to dilute largely  white mining shareholding. Simultaneously,  land claims which overlaid minerals  were put on hold and simply ground to a halt.

A quote from Rural Development and Land Reform Minister Gugile Nkwinti addressed the National Restitution Consultative Conference with great candour in Business Day.  http://www.bdlive.co.za/articles/2011/05/16/mine-land-claimants-to-get-voice

Followed by: "At this point, these highly sensitive matters are left in the hands of mining executives, who either lack the necessary expertise to engage in such emotive matters with land claimants, or who see a loophole in mining law and drive the proverbial bus through it. I would advise the department, in certain cases, to investigate possible misrepresentation of public participation processes." 

Since those observations no further statement on the matter from Min. Nkwinti. We are not sure at this point in time, whether the Minister himself is a proverbial passenger on this bus. 

This weekend the Mail&Guardian´s article http://mg.co.za/article/2012-08-17-00-tokyo-sexwale-and-the-drcs-mr-grab linking the Tokyo, Mikki and Mark Wilcox consortium to Dan "kosher kid" Gertler and Gecamines of the DRC.

Why were readers not surprised to see this article. It just confirms that the BEE concept is a Pan African theme exported from South Africa using tested brand names. Packaged by Dan, onlent or washed by Tokyo and funded through hedge funds like Och Ziff of New York. 

Dan actually pioneered this concept some time ago in the DRC when he pulled a tricky move on MIBA and nearly single handedly walked away with the DRCs diamond fields. 

Tokyo copied this manoeuvre more recently with a deal between his Palladino Holdings and the government of Guinea. The prize in the event of default on his loan would have been that country´s iron ore resources.

Then came the Camec heist in Zimbabwe where Anglo Platinum was backed into a corner and its project carved up for Phil Edmonds and Andrew Groves (with the help of a $100m loan from Och Ziff), which was finally flipped into the Russian Stable at ENRC.  (Mugabe got his loot in cash and has never looked back) 

Readers should take note of this and we hope to do an article soon entitled "THE RUSSIANS ARE COMING" This time it will not be the Western limb where Lonmin´s tragedy happened but more likely the Eastern Limb where ENRC has already acquired a 14.5% stake in Northam Platinum, has a board seat there and said to be rather interested in the misfortunes of one Stuart Murray and AQP next door.

Dan maybe amongst them as these are the real Platinum trophy assets being hunted down now after ENRC bedded down the Katangan Copper belt trophies of Kolwezi (ex First Quantum) and Kalukundi (ex Africo) adjoining world class Tenke. 

It should also be pointed out that amidst all the turmoil in SA, Investec Asset Management acquired a 10% stake in Aquarius Platinum SA (maybe to ward off a takeover bid?) Win if they rebound, win if they don't.

Dan Gertler also spends a lot of his time in the mineral rich capital of the DRC and is close to Kabila. Really close.

While in Kinshasa and when he is away at the project areas he orders in his kosher food. Believe me it does not arrive on a 250cc Yamaha in a take out bag. No, in fact it arrives by private jet. So even if the business is not kosher, the food will be.

Could we then not extrapolate the impoverishment of the common people of the DRC and the blocking of their ability to better their lives with the senseless killing of those fighting for a better life from Lonmin Plc and the continued support of  investments by Investec and others into this murky business called platinum mining?

Dare we equate it to a Holocaust on underprivileged and impoverished people who now need the support of the world to turn the tide?

THE GOVERNMENT NEEDS TO EXPLAIN THIS ONE!

AQUARIUS PLATINUM WITHHELD AN IMPORTANT HISTORICAL STUDY FROM ITS INVESTORS, WHILE THEY AND SYLVANIA PLATINUM LULLED INVESTORS INTO BELIEVING THAT THEY HAD THE MINERALS RIGHTS OVER THE VYGENHOEK FARM. THERE IS A LAND CLAIM ON THIS FARM BY THE CHOMA COMMUNITY AND AQP HAS TRIED TO MISLEAD ITS SHAREHOLDERS THAT THE CORRECT PROCEDURE HAS BEEN FOLLOWED.

Stuart Murray shows double standards when it comes to recognizing indigenous communities.

The Restitution of Land Rights Act (RLR) of 1994 came into being at around the same time  that Nelson Mandela became the Father of the Nation after a long-awaited struggle by all South Africans who did not approve of the apartheid regime. Their combined fight for justice, equality and human rights paid off when Mandela was released and through the efforts of Desmond Tutu, the Truth and Reconciliation Commission´s objective was to heal the wounds of the past and prepare for a sustainable  future with a clear conscious and clean slate. The (RLR) gave dispossessed indigenous communities an opportunity to reclaim their land taken by the previous government and thereby be restituted to the rightful owner. The cut- off date for such process in terms of the ( RLR) was 31^st December 1998.

 The problem which has become evident after fourteen years of waiting was that this cut-off time  applied only to submissions  and that Government had no time constraint imposed on it  to report back on its findings and recommendations. At the time a peaceful community situated in the Groot Dwars River Valley called the Ba  CHOMA had applied within the prescribed time frame for the return of the seven properties called the Pakaneng Lands. The boundaries of Pakaneng were pointed out by the longest surviving member and head of the Choma clan, octogenarian,  Mokomotwane  Simon Choma. He did so by the only method he knew and that was by using the mountains and rivers as landmarks which dominate this prolific landscape.  He proudly directed his knowledge to the officials of the REGIONAL LAND CLAIMS COMMISSION (RLCC) proclaiming the ancestral names of each farm known only to insiders of the clan. As a humble and patient man, who had waited seventy years for this day, he was overwhelmed by the occasion of reclaiming his ancestral lands, not having been formally schooled in western tradition. Little did he know that where his ancestors had put down roots was on one of the richest areas in the world where Platinum Group Metals occur, known today as the Bushveld Igneous Complex and that he would end up competing with Government and big business for the return of his ancestral land. 

When we became involved in this battle just over a year ago, he had already been waiting patiently for a further fourteen years and nothing had been resolved or transferred to him and his community.  As we delved further into the story, we discovered that matters pertaining to his claim where being manipulated behind his back and the likelihood of the return of the Pakaneng Lands was fading fast despite reassurances. Early on in process, a little known government official was blazing a trail for himself as a dealmaker in Platinum interests.  Mr. Kwape  Mmela employed by the RLCC between  1997 and 2002 and  who  was instrumental in the highly publicized  land expropriation case  in 2001 involving white landowners and the Dikwanya Community who had lost their lands and had been forcibly removed through various Apartheid Laws. At this time a progressive and proactive Australian mining company called Aquarius Platinum,   so it seemed, was organising a restitution settlement with the Bakone Ba Pethla community in advance of commencing mining operations. 

MALEMA FOR PRESIDENT.....by Ginny King.

As Nelson Mandel´s dream fades a little everyday and the new regime is exposed for underhanded dealings and backhanders, the regular media is at a loss as to how they should play the same old tune about the gold price and the qualities of Rooibos Tea as platinum looses it´s shine.

When in fact; “We the people are calling and Julius Malema is coming to listen to us ” is their war cry. Most of the regular media remains rudderless and too afraid to stand of someone politicians Gucci shoes.  Yes, Malema is taking advantage of the current situation. However, he is showing that he has the balls to take on the ruling party and expose them for what they have become.

In and around South Africa 2003, the connected and selected became restless and called for changes as to how the cake should be cut as they wanted their share of the country.  As we all know this change have come at a cost to the people. Julius Malema was there to rally the change, as he always does and he himself had benefited from the internal proposal and got more than just some crumbs.

By 2007  Malema become restless as always and seized the opportunity when Tabo Mbeki was showing signs of boredom with his extended term in office.  Malema again was throwing his toys out the cot and with that his now not so favorite teddy Tabo Mbeki was added to the pile of discarded and used toys. His new rattle at the time was Jacob Zuma.  For a more public effect he started beating the Jacob Zuma Drum.

As Tabo Mbeki´s term allowed the tide to lift all yacht´s belonging to  the connected and selected. Downstream and totally neglected by the regular media the little boats continued to bob up and down in the stagnant water waiting for the tide to come in and lift them out of the now smelling water. The outside fires still burned, as they always did prior to 1994, in the perforated drums that held the blackened pot were the pap now started to burn. As winter approached the cold and damp became a reality and the smell of the burning pap was becoming a recurring dream. A dream which always ended with Mandela´s image barely visible on the horizon as  the fading colours of the rainbow nation now started to run down the canvass distorting the vision of a once great leader.

This time Julius Malema did not return to his cot as he was now ostracized from the ANC party as a juvenile delinquent and every attempt was made to confine him to a reformatory.

Instead he braved his critics and wadded into the stagnant water pushing away the dead fish while making his way towards the boats; brandishing his traditional weapon like a modern day Saint Christopher.  As he organized the boats the north wind was picking up and getting stronger, he braved the waves and pointed the sails into the wind while aiming for deeper water with the intention of confronting the masters of the yacht´s and publicly exposing their offshore license´s.

Julius Malema has shown courage and leadership in the past two weeks and I think it ´s only fair for him to tell the boat people what his intentions are i.e. is he running for president and if so will he be able to lift the boats out of the stagnant water and keep them afloat.

If he is beating a drum for another, should we trust his instincts as he seems to admit that he got is so wrong with Jacob Zuma, that he himself is taking on the responsibility to set the record straight.

So if Julius Malema is stirring the pap and improving the mague receipt, he must be able to serve it at all times. And if his intention is to become the new leader he will always be held responsible for the second helping.

THE MADNESS BEHIND THE BEE CONCEPT.

TURNING BACK THE CLOCK MIGHT BE THE SOLUTIONS TO SOUTH AFRICA´s PROBLEMS.

As we mark the death of protesters marching for their cause in the "New South Africa" and  the blame game continues amongst the vested shareholding interests of the "nouveau rich";  it´s time to refocus the spotlight on the almighty empowered and BEE concept.

As THE MEN FROM MARIKANA make their short walk to freedom, and a pressurised Jeff Radebe begins the process of finding a scapegoat, we have to exam another catalyst in this corrupt and corrupting animal called the ANC. That is the old guard, remnants of the previous apartheid government who remained in key positions in government departments and now produce the finishing touches (pieces of paper) to perpetrate the continuity of mining grabs.

According to WIKIPEDIA
"Black Economic Empowerment (BEE) is a programme launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups (black Africans, Coloureds, Indians and some Chinese)^[1] of South African citizens economic privileges previously not available to them. It includes measures such as Employment Preference, skills development, ownership, management, socioeconomic development, and preferential procurement." 

We are not sure why this landmark categorisation of asset class would include "some" Chinese".  What criteria was used to include which "Chinese". 

Then according to the above text it would include the son of the Spaza Shop owner, if indeed he was so disadvantaged. But owning and mining company in the 80´s in South Africa and studying a law degree is hardly disadvantaged.

It is time to revisit the country and the lucrative BEE concept. As the son of the Spaza Shop owner Patrice Motsepe had become super wealthy as well as his super wealthy sister Bridgette Radebe, (Jeff Radebe´s spouse) who at the age of 28yrs or so, was running some kind of mining operation within an apartheid government! At that time, most white people could not run such an operation without having serious connections in the corrupt apartheid government, so her achievements are lacking in footnotes.

So how did these people become super wealthy super quick, when scions like Donald Trump and Matha Stewart spent decades building their empires, Patrice and his sister Bridgette managed to do so in a space of a decade and a half.

Bridgette Radebe  also participated in the design of the South African Mining Charter and present mining legislation. In most democratic countries that would be considered a conflict of interest due to her and her brothers downstream benefits. So why is she absent, being a leading light, from all  the goings on at Marikana?  Why not revisit the Mining Charter to actually rate the transformation process so far (including her contribution to local communities on whose land she has mining stakes in?)

Ever wondered if Brigette Radebe´s mining companies needed a BEE component? How could her company itself become a BEE entity, since it was no longer disadvantaged! I mention this as I have not seen one rags to riches story in recent times after the BEE concept was deployed.

If the BEE concept was never implemented would the historically disadvantaged people be any worse off? If the BEE concept was for (HDSA´s) allowing them an opportunity to build a company or a mining company how come there are no new success stories outside a handful of selected and connected people.

What about the land claimants with minerals underlying their properties, would they not automatically be the natural choice in the immediate mining area. Why would a wealthy BEE some five hundred kilometers away have rights over another land owners area? If so, what is the BEE´s direct obligation to ensure development in the community and region.

What was the purpose of the BEE concept, when clearly it had nothing to do with rural upliftment or social and labour obligations. All it has done, is make it uneconomical for investors.

 Many investors are looking at projects where they take 100% ownership and pay their taxes directly to the governments which is then responsible and accountable for redistribution of these proceeds.
This way the assets get developed properly or they get resold to another commercial investor.

It is time to scrap the BEE concept and let business opportunities be available transparently and not via a third party broker (such as BEEs). If not, there will never be any up and coming Martha Stewart´s or Donald Trumps in the New South Africa.

How do these BEE´s justify their new found wealth, while their comrades are still living in squalor rummaging in the garbage.  If this is what the struggle was for....we have all been conned.

 Even the bishop had us fooled, since we have discovered he has substituted his bishops clothing for ANC colours and is now attacking the very politicians who took up his cause.

If Aung San Suu Kyi received a Nobel Peace prize for exposing ongoing corruption in the Burmese Government.  Nelson Mandela won his peace prize for his LONG WALK TO FREEDOM. What can  "THE MEN FROM MARIKANA" expect for their bravery while demanding a better life for themselves, their families and their colleagues. 

We can also commend the women, the mothers, the daughters "South Africa´s on Pussy Protesters"  who rose up against the new regime in of support of their men, their sons and their fathers with their messages written on the cardboard boxes which they probably found on the garbage heap.


Written by: Ginny King.

NORTHAM PLATINUM LIMITED CAPITULATE:

We were watching the Olympics and cheering on our South African swimmers to gold, hurling naartjie peels at  American´s thus trying to create obstructive ripples in the pool.

Northam on the other hand could not enjoy such sporting extravaganza which despite there being clear rules to the games shows that South Africans can still win fair and square, as Northam was having to concede that they just might have had a hand in the desecration of ancestral graves of historical significance prior to acquiring their project from Anglo Platinum. Sorry Anglo for the misquote, but Northam did not exactly put their hands up and admit it was them.

According to a tersely worded statement issued by Business Day, Northam appears to have thrown in the towel and  now faces the prospect of having to go back to the drawing board to deal with the Pakaneng Choma community´s demands.

This is the hardy and resilient community we mentioned in our first story. It would seem as though Northam had long been aware of this community´s existence  and once again (like the Halloween story and Anglo) allowed someone else - Aquarius Platinum to take the knock. Northam Platinum must surely then have been aware of the historical study that was commissioned by Aquarius Platinum is 2006.

Hoo boy! Lest we be sidetracked by these shenanigans once again, let us return to our other story which we have been working on and which includes an odd South African -  Historically Displaced Australian, (HDA) who has scored big time from a host of platinum exploration properties.

During this cold snap, I shall head for my Zolarium and enjoy my well-earned royalty payment from Eastplats. Surely if Aquarius were engaging in their now proven failed concept of pool and sharing arrangements. i.e. Aquarius does not have to lift a finger, then surely they would have had loads of spare time to  show their neighbours Eastplats the historical report