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Didn't get that from the owner of the local supermarket. I do however think her opinion of the economic ramifications of the Chinese investment in the area is of relevance to the discussion here. China is not South Africa's savior and their only goal is to exploit Africa similarly to the colonial powers of old. Given my past dealings with them I will not trust a single thing they say.
Black empowerment group – the Kopanang Empowerment Company (KEC) – is crying foul, alleging that its Chinese partner – Heaven-Sent SA Sunshine Investment Company – has gone behind its back and negotiated the sale of Kopanang Mine to another Chinese company called China Africa Precious Metals (CAPM).
- BEE group accuses Chinese company of negotiating mine sale behind its back.
- Another Chinese company is interested in buying the mine.
- Concerns about potential job losses if the sale goes through.
In 2018, the two entities came together and bought Kopanang Mine from AngloGold Ashanti, with Heaven-Sent securing a 74% stake and KEC 26%, including unions. KEC says it began to hear rumours last year that its Chinese partner was secretly negotiating with CAPM to sell Kopanang Mine.
This came as a shock to us. We were not consulted, not even accorded the courtesy of writing to us and informing us about their intentions. We felt, and still feel, undermined by this patronising treatment.
KEC director Raisaka Masebalanga
However, Robert Li, the chief executive of CAPM, has denied that they had already bought the mine from Heaven-Sent “as yet”, but conceded that negotiations had been entered into between Heaven-Sent and CAPM to buy the mine.
Heaven-Sent chairman Michael Zhang could not be reached for comment despite numerous efforts, as he is based in China. He did not respond to emails sent to him.
Serious concerns
In a letter to Zhang signed by three KEC directors, Raisaka Masebelanga, James Nieuwenhuys, and Lulamile Xate, they express great concern at the intended move by their Chinese partner.
The BEE partner alleges that the move by Heaven-Sent to sell the mine violates the terms of their partnership agreement and undermines the principles of fair and transparent business conduct.
Kopanang Gold
“We, at Kopanang Empowerment Company, are writing to express our serious concern regarding recent developments that have come to our attention that the shareholders of Kopanang Gold Mining holding a 74% stake are considering the sale of this interest to CAPM.
“We wish to place on record that KEC has not been formally notified of these discussions, which we find deeply concerning given their vested interest in the future of Kopanang. Having canvassed our shareholders, including unions and the surrounding communities, KEC wishes to make it unequivocally clear that we are strongly opposed to any proposal to sell Kopanang to CAPM,” reads the letter.
Our opposition is rooted in CAPM’s demonstrable track record of technical incompetence and organisational dysfunctionality, which poses a significant risk to the sustainability of Kopanang and the well-being of stakeholders. CAPM’s history speaks for itself. Over the years they have failed to undertake any meaningful development of the former Pamodzi assets.
The letter added: “Furthermore, following their takeover of Tau Lekoa mining assets, CAPM’s operational performance has declined sharply, placing the future of that entity in jeopardy despite unprecedentedly high gold prices.”
The three KEC directors continue to lash out at CAPM’s reputation and its dismal mining safety record, adding that since the beginning of May, one of its employees – Elvis Vers – has been missing underground – a fact which was confirmed by Li.
Masebelanga told City Press that they had been treated shabbily just because they are a black empowerment group, adding that even in Heaven-Sent itself certain shareholders were opposed to the proposed sale of the mine to CAPM.
He said CAPM's Tau Lekoa mine operations were also halted in April by the National Nuclear Regulator (NNR) for non-compliance, adding that the mining company has been in the news since 2021 due to illegal mining activities by zama-zamas, particularly at their Lourens Park Mine and their shafts in the Orkney region.
“All these events highlight a pattern of unsafe mining practices,” says Masebelanga, adding that all four labour unions at Kopanang Mine were vehemently opposed to the sale of the mine to CAPM.
National Union of Mineworkers (NUM) North West regional chairman Realeboha Majara, in a telephone interview with City Press, said they “rejected” the sale of Kopanang Mine to CAPM.
“We even wrote to CAPM three months ago voicing our disapproval at the intended transaction; to date we are waiting for a response.
“We are afraid that if the sale goes ahead, the employees will be the victims. They will be retrenched. We reject the move. We don’t want Kopanang mineworkers to be treated like their counterparts at other CAPM mines,” said Majara.
Our contention as the BEE partner, which includes unions, is that CAPM will not retain the current levels of employment we are maintaining. When they bought the Tau Lekoa mine, they retrenched about 1200 workers. We currently have 3 700 employees who are anxious that if Kopanang Mine is taken over by CAPM, most of them will be forced out of work, and with the current high unemployment, we can’t afford that.
Raisaka Mabelanga
He said KEC did not mind Heaven-Sent selling the mine to other companies, including any other Chinese company, as long as it is not CAPM.
“We don’t want it to look as if we are anti-Chinese – we are not. But we are definitely and resolutely against CAPM because of its history and record of poor management,” said Masebelanga, adding that KEC was open to discussing a deal together with the current Kopanang Mine management.
Nothing has been signed
Li confirmed that talks with Heaven-Sent on the sale of Kopanang Mine were going on.
“I want to make this clear: yes, we are negotiating with Heaven-Sent, but we have not yet bought the mine. We have only done the due diligence, but nothing has been agreed upon and signed,” said Li.
“We are prepared to sit down and talk with our BEE partners. We know who they are, but the time is not ripe yet to talk to them. We will talk to the shareholders; there has been a lot of miscommunication.
Robert Li
“We haven’t signed anything with Heaven-Sent, so we can’t talk to the BEE partners now – but we will sit down with them at the right time,” said Li.
He denied allegations of CAPM not observing mine industry safety rules.
“Only one of our employees has been missing underground. We are much better compared to other mining houses. We observe mining safety regulations. We are not doing bad,” said Li.
I think her opinion should still be factual and a lot of the claims do not sound plausible so are likely fake news.
Embarrassing honestly. The way he hops side to side is cringe on an extraordinary level. How does that have a place in todays South Africa? Or an SA we want for our kids?
Apartheid benefited the majority the most.
Chinese are black, not sure what all the moaning is about...
I doubt it. They would need Schweizer Reneke level incidents for swing voters to votela for VF+ again. Most people understand the situation DA is in.
