MPAKA COAL MINE TO REOPEN AFTER 29 YEARS

MBABANE - Lurco Coal Eswatini has been granted a prospecting licence for coal resources at Mpaka Coal Mine in the Lubombo Region.

Lurco Eswatini is a subsidiary of Magni Investment Holdings (MiH). Ellington Nxumalo, co-founder of MiH, met with Eswatini Mining Commissioner, Robert Biyela on Monday to ink the agreement. Also witnessing the signing of the agreement were Eswatini Mining board members including its Chairperson Prince Guduza and other members in Sam Ntshalintshali, Gideon Gumede and Princess Lomajuba.

Others who were also present were MiH co-founder Aubrey Chauke, Commisioner of Mines Robert Biyela, and Lurco Eswatini Director Mlungisi Dlamini.  
Accordings to Nkululeko Dhlamini, MiH’s Accounts Manager, MiH will commence feasibility and exploration over the next few weeks and expects the timeline from this phase through construction to implementation to take between 24 to 36 months. Mpaka Coal Mine was last operated in 1992, having been mothballed after the previous owner exiting the Eswatini market.

Dhlamini said the nature of the coal is suitable for smelters, steel and cement industries and will bolster the country’s participation in the export market and create employment opportunities particularly for the youth.

Minister

Minister of Natural Resources and Energy Peter Bhembe said as custodians of the mineral resources of the Kingdom of Eswatini, his ministry worked to facilitate the creation of prosperity for all stakeholders through the promotion of the sustainable development and responsible exploitation of the country’s mineral wealth.
Eswatini’s National Development Strategy sets out the long-term development programmes that will move the country towards the improvement in livelihood standards of the people by 2022.  

It was further noted that while much has been achieved, the African Development Bank (AfDB) reports that a large proportion of the Eswatini population was not participating in the mainstream economy as the current economic growth was not pro-poor and unemployment remains high. Dhlamini said MiH believed that the Mpaka Coal Mine, once it was up and running efficiently, could be an important single point contributor to addressing this issue in Eswatini.

Inclusive

He said MiH was committed to delivering stakeholder value by creating inclusive economies through the responsible beneficiation of mineral resources. He said the company strives to add value locally, prioritising positive social impact and the inclusion of local people and communities in its operations. He said this would be achieved primarily via job creation, skills transfer, enterprise development, preferential procurement and share allocations to local communities and employees.

“Consequently, MiH plans to meet with the Mpaka community to outline plans and timelines, undertake a needs assessment, answer questions, and agree on the way forward,” he added. Ellington Nxumalo, co-founder of MiH said, “Once up and running, we intend for Mpaka Coal Mine to contribute significantly to the local economy through employment, skills development and the creation of sustainable local value chains. We are currently in the exploration and feasibility stage, which is critical to scoping the scale of the operation.” He (Nxumalo) said once all stages were completed they would be in a better position to quantify our local impact commitments.  

He said, however, as MiH, they anticipated that most roles would be sourced from local hires, and wherever possible, this would include those requiring special skills. He said over time, they also planned for a community bursary scheme to ensure that local community members interested in mine-specific training and development could have the opportunity to follow their dreams.

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