AIM-listed emerging African phosphate explorer and developer Kropz advises that the Water Tribunal is scheduled to resume on in February, following several postponements over COVID-19 concerns.
Following a number of postponements since March 2020, as ordered by the Chairperson of the Tribunal, the hearing against Elandsfontein’s valid integrated water use licence (WUL) has been rescheduled for four days, commencing on 1 February 2021.
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The company would like to advise the market that, in order to allow the Tribunal the appropriate opportunity to fully review the matter, it will not be providing further comment on the official proceedings until the Tribunal has announced its decision. The timing of the decision is currently unknown.
Pending the Tribunal’s decision, Kropz says there is no legal impediment to the continuation of the water use activities authorised in the WUL.
The court’s decision on this matter, which is the outcome of a battle between the developers of the project and environmental activists, may determine whether Kropz keeps the water-use license it needs to develop the Elandsfontein phosphate project – on the West Coast of South Africa, approximately 95 km northwest of Cape Town, within the Saldanha Bay Municipality.
The activists claim that the water-use license being used by the operation, which is yet to begin production, was awarded improperly, while Kropz is refuting the allegation that the license is illegal.
Upon release of its 2019 financial year results on 3 August 2020, Kropz announced that the target date for commissioning of its Elandsfontein phosphate project has been moved to the fourth quarter of 2021. This is a result of additional test work being required, as well as the design and delivery of long-lead capital items and associated works, which have impacted on both timing and the capital cost to first production.
On 4 August 2020, the company announced the appointment of Mark Summers as CEO. Summers has been acting as interim CEO since 26 February 2020. He will continue to perform both the CEO and CFO roles until a replacement CFO has been appointed.