South Africa blocks Kropz bid to mine in national park

South African National Parks has denied Kropz Plc’s (LSE: KRPZ) request to extend its phosphate mining operations into the West Coast National Park (WCNP), citing legal prohibitions on mining within protected areas.

The company, 90% owned by billionaire Patrice Motsepe’s African Rainbow Capital Investments, applied in March to extract phosphate — a key ingredient in fertilizer production — from land within the park, about 90 km north of Cape Town.

The application sparked immediate backlash from conservation groups, including the World Wide Fund for Nature, which is already engaged in a legal dispute with Kropz over the Elandsfontein mine.

“SANParks cannot allow any mining activities within a declared national park, as this is prohibited,” spokesperson JP Louw said. He confirmed the agency has informed Kropz of its decision.

Located in a biodiversity hotspot, the West Coast National Park is home to 250 bird species — over a quarter of South Africa’s total — including flamingos and sandpipers. The park also features ancient human footprints and a seasonal bloom of wildflowers that draws tourists from across the country.

Kropz acquired the Elandsfontein phosphate deposit in 2010 and has developed an open-pit mine and processing facility with an annual capacity of 1 million tonnes. Despite this, the project has faced persistent opposition from environmentalists concerned about its proximity to the park.

Land swap offered

But in a response this week to WWF, Kropz said it had previously offered SANParks the inclusion of biodiversity-rich lands bordering the park. 

“This proposed land swap would not only consolidate the WCNP footprint but also support SANParks’ long-term biodiversity goals with the addition of infrastructure and land access,” it said in a release. 

“We are committed to responsible environmental stewardship and deeply committed to the sustainable use of South Africa’s natural
resources,” Kropz CEO Louis Loubser said. “At the same time, we are fully aware of our responsibility to protect the livelihoods of our employees and their families. We operate under the firm belief that economic development and environmental protection are not mutually exclusive – we can and must do both.”

In addition to Elandsfontein, Kropz operates phosphate projects in the Republic of Congo and aims to become a leading mine-to-market plant nutrient company in sub-Saharan Africa.

Trading in Kropz shares was suspended in mid-April. At the time, the company had lost more than 55% of its value, closing with a market capitalization of £9.5 million ($17.5 million).