South Africa blocks Kropz’s attempt to mine in a national park

Elandsfontein hosts South Africa’s second-largest phosphate deposit.(Image courtesy of Kropz.)

Kropz Plc, a phosphate mining company majority-owned by billionaire Patrice Motsepe’s African Rainbow Capital Investments, sought approval to expand its operations into the West Coast National Park in South Africa. The park is a protected area known for its rich biodiversity, including 250 bird species, ancient human footprints, and seasonal wildflower blooms that attract tourists.

The request was denied by South African National Parks (SANParks), with spokesperson JP Louw stating that mining activities are legally prohibited within declared national parks. This decision aligns with concerns raised by conservation groups such as the Worldwide Fund for Nature, which has been actively challenging Kropz over environmental risks associated with the Elandsfontein phosphate mine.

Kropz has been mining phosphate at Elandsfontein since acquiring the deposit in 2010, developing an open pit mine and processing facility capable of producing one million tonnes annually. Despite this, environmentalists argue that its proximity to the national park threatens fragile ecosystems. The company also operates phosphate projects in the Republic of Congo and aims to expand its influence in sub-Saharan Africa’s agricultural sector by supplying key nutrients for fertilizer production.

Beyond environmental disputes, Kropz has faced financial setbacks. In mid-April, trading in its shares was suspended after a sharp decline, with its market value dropping by over 55% to £9.5 million ($12.7 million). This raises questions about its long-term stability and ability to overcome regulatory and environmental obstacles.