R202 Million chrome assets preserved in Steelpoort illegal mining case

The Limpopo Division of the High Court in Polokwane has upheld a preservation order worth approximately R202 million against assets, linked to an alleged unlawful chrome and Platinum Group Metals (PGMs) processing operation.

The order was secured by the National Director of Public Prosecutions (NDPP) in terms of section 38 of the Prevention of Organised Crime Act 121 of 1998 (POCA).

National Prosecuting Authority (NPA) Limpopo Regional Spokesperson, Mashudu Malabi, said the order relates to approximately 150 000 tons of mineral stockpiles and processing machinery located at the Universal Chrome Minerals (Pty) Ltd washplant in Steelpoort.

“The preservation order followed an investigation by members of the SAPS in the Burgersfort policing area, who seized the property on 24 August 2026. The court accepted that there were reasonable grounds to believe that the property constituted the proceeds of unlawful activities and/or was an instrumentality of offences. The alleged offences include theft of minerals, fraud, money laundering, and contraventions of sections 5 and 6 of POCA relating to dealing with or benefiting from the proceeds of unlawful activities,” explained Malabi.

She added that the operation is also alleged to have contravened the National Water Act 36 of 1998 in relation to unlawful water use.

“The underlying offences are alleged to involve the misuse of Phabema Enterprise, a community company established under Samancor’s Social and Labour Plan (SLP) to manufacture bricks for local women and young people,” Malabi said.

She informed that Phabema Enterprise was provided with de-watered waste rock free of charge on condition that it contained no chrome and was used solely for aggregate and brickmaking purposes.

“It is alleged, however, that the waste rock was unlawfully crushed and screened before being transported to the Universal Chrome washplant in Steelpoort for the recovery and enrichment of chrome and PGMs. The processed minerals were subsequently allegedly transported through the Port of Maputo in Mozambique for export,” added Malabi.

She said investigations established that no authorisation had been granted for the processing or sale of the chrome or PGMs.

Malabi said joint environmental inspections at the Universal Chrome premises further revealed alleged unlawful water use and environmental contraventions.

“The washplant operated without a Water Use Licence, unlawfully abstracted water, disposed of sludge in an unlined pit and stored heavy minerals in an area without appropriate containment. Universal Chrome Minerals (Pty) Ltd misrepresented its regulatory compliance by claiming on its website that it held a valid Water Use Licence and complied with applicable environmental legislation,” she said.

Malabi said following the preservation order, Onelink Investment (Pty) Ltd launched an urgent application for reconsideration of the order, claiming to be an innocent owner in terms of section 52 of POCA.

“The company contended that it had merely leased the preserved machinery and weighbridge to Universal Chrome in terms of two lease agreements. The State opposed the application before the High Court on 3 November 2026. On 5 November 2026, Judge Muller dismissed Onelink’s application with costs, leaving the preservation order in force,” said Malabi.

Malabi said the NPA, through its Asset Forfeiture Unit, will continue using the remedies available under POCA to deprive criminals of the proceeds and instrumentalities of crime.

Welcoming the judgment, the Director of Public Prosecutions in Limpopo, Advocate Ivy Thenga, said: “One cannot steal water and minerals under the guise of a community project and export them via Mozambique. The Asset Forfeiture Unit will pursue the forfeiture of the minerals and the plant. This matter also sends a clear message that claims of innocent ownership will be rigorously tested. The Asset Forfeiture Unit’s forfeiture application will follow in due course.”