Patrice Motsepe’s firm barred from phosphate asset

Key Points

• African Rainbow Capital’s Kropz faces a major setback as SANParks denies access to phosphate reserves within South Africa’s West Coast National Park.
• Conservationists and the WWF oppose Kropz’s mining plans, warning of risks to wetlands, fragile aquifers, and over 250 bird species in the ecologically sensitive area.
• The ruling underscores rising environmental scrutiny on Africa’s mining industry, potentially impacting Motsepe’s reputation for socially responsible investing.

South African billionaire Patrice Motsepe’s African Rainbow Capital has run into a major obstacle after the country’s national parks authority blocked its mining unit, Kropz, from accessing key phosphate reserves inside a protected conservation area. This deals a blow to Kropz’s long-running efforts to expand near its $160 million Elandsfontein mine and puts a spotlight on the growing tension between mining and environmental protection in South Africa.

The Elandsfontein project, located just outside the West Coast National Park about 98 kilometers north of Cape Town, has been at the center of controversy for more than a decade. Conservationists have fought against the project from the start, warning it could cause lasting damage to one of South Africa’s most sensitive ecosystems.

Kropz’s push for expansion rejected

Kropz, which is 90 percent owned by African Rainbow Capital Investments, had asked the South African National Parks (SANParks) in March to remove part of the West Coast National Park’s protected status. The goal was to tap into South Africa’s second-largest phosphate deposit, which lies in a wetland recognized internationally for its ecological value.

But SANParks firmly rejected the request.  “Kropz has been informed of the decision. SANParks cannot allow any mining activities within a declared national park, as this is prohibited,” spokesperson JP Louw said.

The setback comes just after the World Wildlife Fund (WWF) filed a formal objection to Kropz’s application and announced legal action against the company’s operations near the Langebaan Lagoon, a wetland listed under the Ramsar Convention. Environmentalists warn that mining in the area could threaten a fragile aquifer system and put more than 250 bird species — including flamingos and sandpipers — at risk.

Kropz, which acquired the Elandsfontein site back in 2010, has struggled for years to bring it fully online, hampered by technical challenges and fierce legal opposition. The company has not yet commented on the latest SANParks decision.

A blow to ARC’s ambitions

African Rainbow Capital, founded by Patrice Motsepe in 2015 to build Black-owned capital in South Africa, has steadily expanded its portfolio. Its latest report showed a 4.1 percent rise in net asset value to R19.39 billion ($1.04 billion) for the half-year to December 2024.

But the West Coast dispute may prove one of its toughest challenges yet. The West Coast National Park, famous for its spring wildflowers and ancient fossilized footprints, is both an ecological treasure and a key tourism draw. Conservationists argue that phosphate mining has no place in such a fragile environment, and SANParks agrees.

The latest development also raises questions about Motsepe’s image as a champion of socially responsible investment, as industries across Africa come under mounting pressure to put sustainability ahead of short-term profits. With the Elandsfontein project once again in limbo, the fight over Kropz’s future shows just how powerful environmental regulation is becoming — and how much it could reshape the future of mining on the continent.