Royalties paid to the Bapo Ba Mogale tribal community dropped after 2009 because of a fall in international metal prices, the North West standing committee on public accounts (Scopa), heard on Tuesday.
"Since the 2009 crash, platinum has never recovered back to its original price. We used to sell platinum for US2200 per ounce and it declined to US752 per ounce," Lonmin legal head Peter McElligot told the committee, according to a statement.
"The falling of the price resulted in loss of profits in the company," he said.
The North West Scopa met representatives of the Bapo ba Mogale tribal community, Lonmin, Samancor Chrome and International Ferro Metals Limited on Tuesday to try and establish how much money had been paid in royalties for the use of tribal land.
In a statement, the North West Scopa said the Auditor General had found that the D-account, into which the royalties were paid, had not been audited for 19 years.
According to Scopa, McElligot said Lonmin had paid almost R373 million into the account between 1970 and 2011.
Of this, R57m was paid in 2006, R81m in 2007, R100m in 2008, with only R448,000 paid in 2009 and R504,000 in 2011.
Samancor Chrome's corporate governance head Archie Palane had said the company had paid more than R5m in royalties since 1984.
International Ferro Metals' group finance manager Pieter Botha had said it had not entered into agreements with the Bapo Ba Mogale tribal community, as it did not mine on communal land.
However, the community did own a 20 percent stake in the company.
"While waiting for information on how we can contribute to the D-Account from the department of local government and traditional affairs, the company has established a community trust account, which has a current balance of R8.4m," Botha said.
Scopa said all the mining companies claimed that the Bapo Ba Mogale community was disorganised.
Scopa chairman Hlomane Chauke said that at the next round of discussions, to be held next week, the department of minerals and energy would be called on to explain how the royalties should be paid.
"This government will not allow things to fall apart. We want to make sure that we defend the gains of our people," Chauke said.
Metal price fall hit tribal royalties: committee hears
Royalties paid to the Bapo Ba Mogale tribal community dropped after 2009 because of a fall in international metal prices, the North West standing committee on public accounts (Scopa), heard on Tuesday.
"Since the 2009 crash, platinum has never recovered back to its original price. We used to sell platinum for US2200 per ounce and it declined to US752 per ounce," Lonmin legal head Peter McElligot told the committee, according to a statement.
"The falling of the price resulted in loss of profits in the company," he said.
The North West Scopa met representatives of the Bapo ba Mogale tribal community, Lonmin, Samancor Chrome and International Ferro Metals Limited on Tuesday to try and establish how much money had been paid in royalties for the use of tribal land.
In a statement, the North West Scopa said the Auditor General had found that the D-account, into which the royalties were paid, had not been audited for 19 years.
According to Scopa, McElligot said Lonmin had paid almost R373 million into the account between 1970 and 2011.
Of this, R57m was paid in 2006, R81m in 2007, R100m in 2008, with only R448,000 paid in 2009 and R504,000 in 2011.
Samancor Chrome's corporate governance head Archie Palane had said the company had paid more than R5m in royalties since 1984.
International Ferro Metals' group finance manager Pieter Botha had said it had not entered into agreements with the Bapo Ba Mogale tribal community, as it did not mine on communal land.
However, the community did own a 20 percent stake in the company.
"While waiting for information on how we can contribute to the D-Account from the department of local government and traditional affairs, the company has established a community trust account, which has a current balance of R8.4m," Botha said.
Scopa said all the mining companies claimed that the Bapo Ba Mogale community was disorganised.
Scopa chairman Hlomane Chauke said that at the next round of discussions, to be held next week, the department of minerals and energy would be called on to explain how the royalties should be paid.
"This government will not allow things to fall apart. We want to make sure that we defend the gains of our people," Chauke said.
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