Parliament, Tuesday, 29 October 2024 – Having engaged with Alexkor SOC Ltd to understand its business operation and challenges, the Portfolio Committee on Mineral and Petroleum Resources appreciates the complexities associated with the company’s mining operation on the north-west coast of South Africa.
Alexkor was established in terms of the Alexkor Limited Act of 1992 as a listed schedule 2 public entity wholly owned by the government, with the Minister of Mineral and Petroleum Resources being the shareholder representative. The land where Alexkor is mining was successfully claimed by the Richtersveld community and it is valued at approximately R10 billion. The deed of settlement stated that all mining rights would accrue to the community. Marine mining rights remained with Alexkor.
Alexkor together with Richtersveld Mining Company established a pooling and sharing joint venture that is conducting mining operation on their behalf. Alexkor owns a 51% stake in the venture and Richtersveld owns 49%. The area where the joint venture mines has been mined since 1928 and resources there are severely depleted. Alexkor’s core business is the mining of diamonds on land, along rivers, on beaches and in the sea.
Minister Gwede Mantashe said that governance instability poses a serious challenge for the company. He said that his priority is to put in place a solid governance structure, which will ultimately address all operational risks.
A full complement of the board consists of six non-executive and two executive members, namely the chief executive officer and chief financial officer. The term of office of four non-executive board members ends at the end of December 2024, and the committee urged the Minister to expeditiously move to fill the imminent vacancies. The board needs at least six members to form a quorum.
The committee has resolved to find a date to conduct oversight visit to Alexkor in Alexander Bay.
ISSUED BY PARLIAMENT COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON MINERAL AND PETROLEUM RESOURCES, MR MIKATEKO MAHLAULE.
For media enquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Mr Justice Molafo
Cell: 081 424 7481
Email: jmolafo@parliament.gov.za
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