The Platinum Province is also a province rich in tradition. A number of traditional communities in North West Province are active participants in the modern economy. The best known among these is the Royal Bafokeng Nation, with diverse holdings in 18 companies ranging from telecommunications to short-term insurance and assets worth more than R30-billion, but there are several other Setswana-speaking communities that have shares in mining companies active in North West Province.
Many of the complex share-ownership and black empowerment deals have led to tension and court disputes between companies and communities – and indeed between groups within communities – but the great mineral wealth of the area presents a great opportunity for the upliftment of poor rural people.
Royal Bafokeng Nation
The Royal Bafokeng Nation (RBN) were very much in the news before and during the FIFA World Cup in South Africa, with England’s soccer
squad staying at and training at the Bafokeng Sports Campus, which received a R600-million upgrade prior to the tournament.
The Bafokeng number around 300 000, of whom about half live to the north-west of Rustenburg, with the capital city of Phokeng being the administrative centre. The source of the community’s wealth is the mineral-rich land they own. Remarkably in the South African context, this black tribe has held title to this land since the time of British rule. The great, great, great, great grandfather of the current kgosi (king) of the Bafokeng, Kgosi Mokgatle, encouraged young men to work for cash on the mines of Kimberley so that title deeds for the group’s traditional lands could be bought and registered. Now Kgosi Leruo Tshekedi Molotlegi presides over a community that is a significant player in the platinum sector and has a large and diverse investment portfolio.
Royal Bafokeng Holdings (RBH) has a 13.4% stake in Implats, a company that produced 1.74 million ounces of platinum in the 2010 financial year. RBH’s joint venture with Anglo Platinum (the Bafikeng Rasimone Platinum Mine, BRPM) is a highly successful operation that will spend R11.8-billion to develop the Styldrift farm, which should start functioning in 2014. Control and management of the BRPM devolved to the Bafokeng in 2008 but 100% of the product will continue to be smelted by AngloPlat.
In November 2010, Royal Bafokeng Platinum (RBP) listed on the JSE and achieved a market cap of R10.65-billion. Other mineral assets controlled by Bafokeng Holdings include shares in SA Coal (65%) and Merafe Resources (29%), a partner with Xstrata in producing ferrochrome.
The Royal Bafokeng Nation has three corporate entities: the Royal Bafokeng Administration, the Royal Bafokeng Institute (education and development) and the investment vehicle, Royal Bafokeng Holdings. In recent times, RBH has followed a strategy of diversification with interesting
new acquisitions in banking (a R2.5-billion investment in Rand Merchant Bank Holdings) and property (R500-million in Atterbury). RBH also holds:
• 2% of Vodacom (a R2.3-billion outlay)
• 25.1% of Zurich Insurance
• 20% of Astrapak
• 51% of Bafokeng Concor Technicrete
• 12.4% of Metair Investments (several companies in the automotive sector)
Although dividends from these and other investments ‘only’ brought in R339-million in 2009 (as against a return of R1.6-billion in 2008) the Royal Bafokeng Nation has invested about R2-billion in infrastructure over the last few years. Forty-nine schools have been built, including the architecturally inspiring Lebone II College in Phokeng.
Bakgatla-Ba-Kgafela
The Bakgatla-Ba-Kgafela Traditional Administration (BBKTA) is responsible for the governance of the 350 000-strong community of the same name in the Moruleng district. The Bakgatla are the
single biggest shareholder (32.98%) of Platmin, a JSE-listed company. Kgosi Nyalala Pilane, the leader of the Bakgatla, has ensured that the mine employs people from local communities and has been instrumental in the establishment of the Pilanesberg Tannery and other investments in tourism projects. Construction of the mine created 2 500 jobs with a further 3 000 permanent jobs on the mine itself.
Platmin’s biggest asset is the Pilanesberg Mine, which has a 4.2-million-ounce ‘proven
and probable’ mineral resource. About 30% of Platmin’s shares are held by Pallinghurst Investment Consortium. In 2010 tension arose about Platmin’s plans to expand onto land 90%- owned by the Bakgatla. The Bakgatla obtained a 15% share in Anglo Platinum’s Union Mine in 2006.
Disputes
The Bakwena-Ba-Mogopa hold 26% of the Leeuwkop platinum project near Brits, with Implats holding the majority share. Conflict between members of
the royal family and the traditional council has led to several court battles.
The North West Provincial Government appointed administrators to replace the traditional councils of the Bakubung-Ba-Ratheo and the Bapo-Ba-Mogale in 2010. The former community is a partner of Wesizwe Platinum and consequently a shareholder in the potentially lucrative Frischgewaagd- Ledig Project but many community members are demanding clarity on the fate of their shares. The Bapo own 7.5% of the Pandora joint venture, 20% of Skychrome and a 26% stake in a ferrochrome smelter with Samancor.
