OVERVIEW
Mining The provincial government may start a mining company.
Mafube coal mine is a JV between Anglo American Coal and Exxaro 30km west of Middelburg.
M
pumalanga’s coal-fired power stations have provided South Africa with electricity for decades and continuing investment in new projects will prolong that tradition for many years yet to come, despite increased interest in renewable resources. Nkomati Anthracite has been revived and is up and running after an investment from Unicorn Capital Partners, formerly Sentula Mining. The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. The high-grade anthracite that the mine will produce is suitable for use by the ferro-metals industry because it has low phosphorus and sulphur levels and high fixed carbon percentages. The communities of Kwalugedlane, Matsamo and Mawewe have a 16.1% stake in the relaunched mine and the Mpumalanga Economic Growth Agency (MEGA) holds 34%. Coal giant Exxaro has committed R3.8-billion to its Belfast project, an investment that will create 1 160 jobs and have an impact on the GDP (over the life of the mine) of R39-billion, according to the Premier’s office. Exxaro will establish an 80ha agri-village and spend R50-million to accommodate the 32 households who are affected by this new mine. Exxaro is also extending the life of its Leeuwpan Mine by another 10 years. The mine has 1 200 permanent employees. In his 2018 State of the Province speech, then Premier David Mabuza noted that mining contributes 25.9% of GDP and employs 53 000 people. He further noted the sad closing of the Lily Mine (because of fatalities)
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SECTOR INSIGHT New safety measures include Wi-Fi for underground miners. • Unicorn Capital Partners has restar ted Nkomati Anthracite Mine. and Glencore’s Optimum Colliery and raised the possibility of developing a diversified, state-owned mining company. MEGA has been tasked with investigating whether it might be possible, looking at the resources which the state already holds (as seen in MEGA’s stake in Nkomati Anthracite). Said Mabuza, “We cannot have mining assets in this province that are lying idle and unproductive when unemployment is this high. We have to find innovative ways to revive such mines.” MPUMALANGA BUSINESS 2018/19