The Department of Mineral Resources and Energy (DMRE) has denied allegations by PP Gemstones that it is ignoring illegal sugilite mining by Black Rock mine and failing to respond to legal correspondence.

Assmang operates the Black Rock mine on several farms in Kuruman, in the Northern Cape. Its registered mining right allows it to extract manganese ore.

In June 2020, PP Gemstones and its related entities applied for three mining permits to mine gemstones, excluding diamonds, on a part of Portion 9 of the Farm N’Chwaning 267 in Kuruman. The regional manager for the Northern Cape accepted these applications.

Assmang became aware of these applications in May 2021 and objected, arguing that the land in question is part of its legally permitted mining area. The company claimed that gemstones are included within the definition of manganese ore, making the approval of separate mining permits for gemstones legally invalid.

However, the director-general ruled that Assmang's mining right only covered manganese and not gemstones, dismissing Assmang's appeals. These decisions are now under review by Mineral and Petroleum Resources Minister Gwede Mantashe and remain unresolved.

Assmang has also appealed the actual granting of the mining permits to PP Gemstones, and these appeals are still being reviewed by the DMRE. Additionally, in November 2023, Assmang took legal action to overturn an environmental authorisation that allowed PP Gemstones to start mining.

The Gauteng High Court in Pretoria ruled in Assmang’s favour, invalidating the environmental authorisation and preventing PP Gemstones from starting mining operations.

In November 2024, the DMRE's attempt to appeal this ruling was rejected by the High Court. The State Attorney's Office then applied directly to the Supreme Court of Appeal on December 11, 2024. The Supreme Court has not yet decided on this matter and the DMRE is still considering whether it should continue with the appeal.

During late 2024, PP Gemstones repeatedly requested the DMRE director-general to issue letters of recommendation to the International Trade Administration Commission of South Africa (Itac) to obtain export permits.

However, DMRE director-general Jacob Mbele refused, citing the court ruling that overturned PP Gemstones’ environmental authorisation. Since the legal case is ongoing, he said he was unable to issue the requested letters.

On December 23 last year, PP Gemstones sought legal action against Assmang, Black Rock mine, the South African Police Service and the South African Revenue Service (Sars).

PP Gemstones asked the court to prevent Assmang and Black Rock from selling sugilite and other gemstones mined from Farm N’Chwaning 267, stop the sale of sugilite gemstones seized by Sars at the OR Tambo International Airport, declare PP Gemstones as the rightful owner of the seized gemstones and order Sars to return 619 kg of sugilite to PP Gemstones.

On January 27, the South Gauteng High Court dismissed PP Gemstones’ application owing to a lack of urgency. As a result, the seized gemstones remain in Sars custody and are under investigation.

Given these circumstances, Mbele said he remains unable to issue the requested letters of recommendation.

The DMRE has insisted that it will not be pressured into making premature or unlawful decisions but that it remains committed to supporting legal investment in the mining sector.

The DMRE has received multiple media inquiries about allegations of illegal mining related to this dispute. The central issue is that both Assmang and PP Gemstones have been granted mining rights for different minerals on the same land. It said that this is a common occurrence in South Africa, where different minerals often exist in the same area owing to natural geological processes.

Mbele explained that many mining areas in South Africa contain multiple minerals. He cited the Bushveld Complex as an example, where platinum-group metals, chrome and vanadium are all found together.

South African mining laws allow different companies to mine different minerals on the same land, either independently or through agreements.

Some companies have successfully negotiated agreements to mine together, while others struggle with issues such as safety, logistics and commercial arrangements. Where necessary, the DMRE facilitates discussions between companies.

However, its ability to intervene is limited when legal disputes and appeals are involved.

Mbele emphasised that the DMRE is committed to sustainable mining and fair access to resources. Allowing different minerals to be mined in the same area is one way to achieve this. Proposed amendments to the Mineral and Petroleum Resources Development Act will soon be presented to Cabinet and released for public comment.

These changes aim to provide additional safeguards for mining companies operating in shared mineral zones. Investors and the public will have the opportunity to give input on the proposed changes, the DMRE said.