Remote rural communities have lost their farm land and access to clean water in northern South Africa as a result of mining by Anglo Platinum, the world’s largest platinum company, according to a report released by ActionAid.

The report – Precious Metal: the impact of Anglo Platinum on poor communities in Limpopo in South Africa – highlights how the Bapedi community is suffering increased hunger and poverty while the company reaps record profits.

"Some of the poorest people on earth are paying a heavy price for the global platinum boom," says Zanele Twala, ActionAid’s country director in South Africa.

"Communities, especially women, have lost their main means of livelihood – access to land and water. We believe this constitutes a violation of their basic human rights."

The report estimates thousands of poor people in four villages in the Bushveld mineral complex in Limpopo province have lost farm land and received little compensation in a series of relocation deals with Anglo Platinum.

"There were so many promises," said Isaac Pila, 72, who moved to the new township of Sterkwater to make way for open cast mining on his land.

"None of it was true. There is no grazing land for the animals and my people are no longer ploughing. They promised that we would live like we did in the village, even better. It’s not true. My people are suffering."

Whole communities have lost access to clean water and some villages have seen their water supplies cut off altogether, the report claims.

Independent water tests commissioned by ActionAid, show that samples taken from sources near Anglo Platinum’s Potgietersrus Limited (PPL) mine were unfit for human consumption at four out of ten sites due to contamination by high levels of total dissolved salts, sulphate and nitrate and in one case, in addition, elevated levels of total coliforms.

Scientific tests show that high levels of nitrate in borehole water at Ga-Molekane primary school most probably originated from blasting and mining related activities at the neighbouring platinum mine and were seven times higher than standard drinking water, raising serious health concerns.

Approached by ActionAid for a response, Anglo Platinum said that to date testing of water by the company and the municipality had picked up only one incidence of contamination and remedial action was taken immediately.

Majority owned by mining giant Anglo American, last year Anglo Platinum made headline earnings of over ZAR12bn (approx US$1.75bn) but spent less than 1% of its profits on community development.

ActionAid is calling on the South African Parliament to reject proposed amendments to the mining act that would substantially weaken environmental and social safeguards.

"Instead, ActionAid asks parliament to revise the law to require prior informed consent by the communities whose land is earmarked for mining and a guarantee of fair compensation," added Twala.

"We are asking the South African Human Rights Commission to investigate the issues raised in our report," said Twala.

"We need action in South Africa and also at the United Nations, to ensure multinationals like Anglo Platinum are held to account on human rights issues," said Alex Wijeratna, ActionAid corporate campaigner.