(dis)INFOMAN makes headlines in S.A.'s Business Day:
07 May 1998
Marsfontein wrangle is now Internet fodder
The Marsfontein battle is playing out on yet another front - the Internet, writes Simon Barber
THE battle over diamond rights on Marsfontein farm has been a topic of heated discussion in an Internet discussion group devoted to the fortunes of SouthernEra.
Sentiment in the discussion group, which includes SouthernEra investors whose shares on the Toronto exchange have fallen from around $20 to less than $10 in the brouhaha, has been decidedly hostile towards the group of 28 heirs to the rights as "racist" Afrikaners with an eye on the main chance.
De Beers, which has provisionally bought the rights from the heirs' new company, NGS, pending the outcome of legal proceedings, has also been taking hits as the orchestrator of a supposed plot to bounce SouthernEra so that it could take possession itself.
Recently, a contributor to the discussion group,identifying himself as Infoman, submitted a detailed riposte signed by "an heir" and headlined "Marsfontein: enough is enough".
According to this document, the relevant portions of the farm were acquired "several years" ago by J Kruger, JF Naude, FAJ Grimbeek and HS Kok, who resold the land immediately, while reserving rights to any minerals under it. The most recent transfer of the property was in the early '80s to the SA Development Trust. The title deeds, says the "heir", state that the mineral rights remain reserved.
Randgold, SouthernEra's partner, not only knew this but knew "who most of the heirs were" when it applied for expropriation of the rights under section 17 of the Minerals Act last October. However, it did not contact the heirs, let alone attempt to alert them to the fact that
they were sitting on a diamond-bearing kimberlite that was about to be taken from them because they had not exploited it. Rather, Randgold sought to obtain the rights "secretively".
The heirs, says the "heir", first officially learnt of their mineral rights in early December when "a company represented by Richard Bluett" offered to buy them out. Days later they learnt of Randgold's section 17 expropriation proceeding. Their counsel contacted the
minerals and energy department. Its director-general decided on December 15 not to proceed with expropriation and asked if they were willing to negotiate directly with Randgold.
They were. The "heir" says Randgold initially refused to talk.However, a meeting with SouthernEra's chairman, Christopher Jennings, on January 8 - at which the heirs disclosed they had received an offer of R48m - left the heirs believing the matter could be settled. They were
"stunned" when Jennings, after talking to Randgold,decided to pursue expropriation. When the minerals and energy department seemed to switch sides and require they show cause why they not be expropriated, the heirs sought a court injunction to block the taking of their
property, launched a company, NGS, and registered their rights in its name.
According to the "heir", talks continued. NGS made clear it was complying with the Minerals Act by seeking a buyer willing and able to mine within 12 months. Randgold and SouthernEra made an offer of R980 000, a fraction of what others were bidding.
Not mentioned
Finally, says the "heir", an agreement was "entered with a party ... capable of fulfilling the objective of the Minerals Act". That party is De Beers, whose name is not mentioned once in the document. The "heir" notes that "there was no formal tendering process involved as this is a private property".
The "heir" blasts SouthernEra and Randgold for trying to bring "international pressure" to bear on Mineral and Energy Minister Penuell Maduna to grant them the rights. He also contends that SouthernEra's Jennings has lived in SA long enough to understand its laws and should have known better than to risk his investors' money - the company reportedly sank $180m developing Marsfontein - before ensuring his company's rights.
Finally, the "heir" argues, SouthernEra may have committed crimes by prospecting on and removing diamonds from Marsfontein since it did not have a government permit. Only Randgold had authority, but never used it. The joint venture agreement between Randgold and SouthernEra specifically precluded the latter from acting as the agent of the former.
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IMHO... The usual fairy-tale approach.... |
