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Ivanhoe Mines just got approval to move forward with its $1.6-billion Platreef platinum project in South Africa. However, reports released Wednesday suggest that those who don’t approve of the project still want to make their voices heard.
According to Bloomberg, protesters took action by blocking a highway near the project with rocks and tires in a demonstration against Platreef. South African police fired rubber bullets at the protesters to disperse the demonstration before removing the group and arresting three people.
Frans Makhafola, deputy chairman of the Masehlaneng Development Committee, one body representing the communities near Platreef, told the news outlet, “[t]he police are shooting at us with rubber bullets and we have no idea why. This is a peaceful protest. We want further engagement and more talks to happen.”
Not the first incident
Ivanhoe has said in the past that over the last year and a half it has held over 150 meetings with local communities regarding Platreef, and that it remains confident that the overwhelming majority of residents support the project’s development. Still, opposition to the project is nothing new. In particular, some community members are unhappy with aspects of the sale of a 20-percent stake in Platreef to people living in the local Mokopane area.
Responding to Wednesday’s incident, the company said in a statement that it had no involvement in the police action. The notice also condemns “illegal actions by known trouble-makers,” and suggests that the organizers of the group behind the incident encouraged residents of nearby communities to gather at an access roadway “with false claims that the company would be recruiting workers for construction at [Platreef].” Ivanhoe recently announced that preparations have begun to resume work at Platreef, but construction has not yet started.
Furthermore, Ivanhoe reiterated its October 8 statement that one organizer, Aubrey Langa, has a criminal record and has been involved in “violent actions aimed at disrupting company relations with host communities.” Ivanhoe said in a statement to Bloomberg that it “will not be held hostage by a small group of professional, self-serving agitators whose agenda and conduct is contrary to the majority interests.”
Small loss for Ivanhoe
With Platreef slated to be one of the largest platinum mines in the world and one of the lowest-cost platinum producers in South Africa, precious metals investors will no doubt be keeping an eye on developments at the project.
As of 2:44 p.m. EST, shares of Ivanhoe were down 3 percent, or $0.03, trading at $0.95.
Securities Disclosure: I, Teresa Matich, hold no investment interest in any companies mentioned.
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