A LONG STANDING MINING IMPASSE BETWEEN MOTSEPE OWNED COMPANY AND PP GERMSTONES STILLA HOT POTATO

PP Gemstones, a
leading mining company specialising in precious
gemstones, held a media briefing at the African
Pride Melrose Arch Hotel in Johannesburg. The briefing,
coordinated by PP Gemstones spokesperson Saki
Mangole, was led by CEO Pitso Matebesi, who addressed
the company’s ongoing legal dispute with Assmang, a
mining giant jointly owned by African Rainbow Minerals
(ARM) and Assore.
Matebesi detailed allegations of illegal mining, unlawful
denial of access to a legally permitted mining site in
Kuruman, and the systemic obstacles faced by new
entrants in South Africa’s mining sector. He emphasised
that PP Gemstones is not the first company to experience
such treatment, as larger corporations continue to exploit
their financial influence and political connections to push
emerging businesses out of the industry.
“The issue of big companies using their access and
connections to bully and suppress new entrants in mining
has been a long-standing problem. The frustration is that
companies like ours invest millions in obtaining legal
mining licenses—an expensive and rigorous process—
only to find that these permits hold no real value because
of unlawful interference from industry giants,” said
Matebesi.
PP Gemstones holds the only legal mining permits for
sugilite, a rare gemstone found exclusively in the Kuruman
region. However, Matebesi claims that Assmang has
refused to grant PP Gemstones access to its designated
mining area, while evidence points to illegal mining and
trading of sugilite from Assmang’s operations.
“We have submitted multiple reports to law enforcement
agencies, the Minister of Mineral Resources, and even the
Public Protector, as well as the Parliament Portfolio yet no
action has been taken. Meanwhile, confiscated sugilite
worth billions of rands is being detained at O.R. Tambo
International Airport, and individuals have testified under
oath that they sourced the gemstones from Assmang. The
fact that these crimes go unpunished raises serious
concerns about corruption and regulatory failure,” he
added.
A representative from the Congress of South African
Trade Unions (COSATU) also spoke, highlighting the
broader economic damage illegal mining in the area.
However representatives from South African National
Civic Organization (SANCO) in Kuruman, who were
scheduled to speak at the briefing on the broader
economic damage illegal mining and corporate
monopolisation have inflicted on the community (of
Kuruman) –including job losses and suppressed local
business growth – were barred from participating in the
event, further raising concerns about efforts to silence
voices advocating for fairness in the mining industry.
APPEAL FOR INDUSTRY-WIDE ACCOUNTABILITY
Matebesi accused regulatory bodies of deliberately stalling
PP Gemstones until its permits expire, enabling Assmang
to apply for an extension under Section 102 of the Mineral
and Petroleum Resources Development Act (MPRDA) and
secure exclusive mining rights.
He argued that this is not an isolated case, noting that
many companies have suffered similar injustices, losing
millions of rands because the system fails to protect new
entrants.
“This is not just about PP Gemstones,” Matebesi
emphasized. “Many companies are sold a false dream—
one where they follow the law, pay exorbitant fees for
licenses, and still find themselves unable to operate due to
corporate bullying. This is a fight for fairness. If we allow
monopolies to sabotage new entrants, we sabotage jobs,
revenue, and the future of mining itself.” One such victim
is female entrepreneur Dima Moloi of Baobab Trading &
Projects, who also spoke at the briefing, sharing her
experience.
Moloi recounted how she was left destitute after losing
over R3 million and forfeiting her granite and syenite
mining license. Her case further underscores the systemic
obstruction smaller mining businesses face when
competing against powerful corporations.
In response, PP Gemstones is calling for a thorough
investigation into these allegations and urgent reforms to
ensure a fair, transparent mining sector—one that
empowers and protects new entrants, particularly women
striving to establish themselves in an industry historically
dominated by male-led corporations. – ENDS–
For media inquiries or interview requests, please
contact:
Tankiso Komane – tankiso@leisurenews.co.za / 068 532
4932
Georgina Bonisiwe – georgina@bonisiwe.co.za / 079