If a proposed 220km2 expansion to the Somkhele open-cast coal mine in northern KwaZulu-Natal doesn’t go ahead, thousands will lose access to their income.
This is according to the Jan du Preez, CEO of Tendele, which owns the mine, in response to questions about the mine’s future - particularly since environmental groups and a community body head to the Supreme Court of Appeal this week to challenge the expansion.
The mine has been in sharp focus after the brutal assassination of anti-mining activist Fikile Ntshangase 10 days ago. Three gunmen walked into her home, asked her grandchildren to go outside while they “greeted” the 63-year-old, and then plugged her body with bullets. One of the shots was fired while Ntshangase lay on the ground, with a single bullet hole visible in the floor showing exactly where it happened.
Ntshangase was buried on Friday, her fighting spirit lauded by those who attended to say their final farewell.
Du Preez told Sunday Times Daily that he was “shocked and saddened” by Ntshangase’s murder.
“We understand that an investigation is under way by the local police and are hopeful that the perpetrators of this terrible crime will be brought to book. We are working with the police. We condemn all forms of violence and intimidation in the strongest possible terms. This includes, I emphasise, violence perpetrated against those who have opposed our efforts to work for the expansion of our mine,” he said.
But when asked about what lawyers this week described as a “culture of intimidation” over the mine and its proposed expansion, Du Preez said: “There is no such culture attributable or known to the mine.”
In 2016, mining rights were granted for the expansion to the Somkhele mine, which has been operating since 2007. The area is not currently being mined, and Tendele says it only intends expanding operations into an area less than 10km2.
The rights were immediately challenged, with lawyers arguing in the Pietermaritzburg High Court in 2018 that the required environmental - and other - authorisations had not been obtained. The court ruled in Tendele’s favour, but lawyers representing the Mfolozi Community Environmental Justice Organisation (MJECO), are taking the case on appeal in the Supreme Court this week. They want the mine to be prohibited from operating until the authorisations are obtained.
In a second case, also brought by MJECO and set to be heard in the Pretoria High Court in 2021, lawyers are seeking to completely set aside the mining rights granted in 2016.
These two cases are being spearheaded by 19 families who are refusing to make way for the expansion. They - and Tendele admits this - will need to be relocated as their homesteads are within the proposed mining area.
One of the 19, Sabela Dladla, the main applicant in both matters, has since withdrawn - just months after two gunmen confronted him. A lawyer said last week it was clear that the intimidation had been brought to bear.
Ntshangase, however, was not part of the 19 applicants. Instead, she was vocal within MCEJO against the expansion, and a fervent anti-mining activist in general. Her family and legal reps say this activism is what got her killed.
In a third case, Tendele took the 19 to court over compensation. The matter has since been referred to arbitration.
Asked about the court cases, Du Preez said: “Our legal advisers have approached the MCEJO advisers with a view to finding an amicable solution for all interested and affected parties. We believe that only through dialogue and, if necessary, mediation, can these complicated matters be resolved. We are awaiting a response from MCEJO’s advisers, and we trust that this will be forthcoming after Ms Ntshangase’s funeral.”
While there has been some antipathy towards the mine and its expansion, it is also the case that it is by far the largest source of economic development in the area.
— Tendele CEO Jan du Preez
The CEO acknowledged that there was opposition to the mine, but said that it was also widely supported.
“While there has been some antipathy towards the mine and its expansion, it is also the case that it is by far the largest source of economic development in the area and, we believe, its survival and expansion is supported by many others.
“What we would like is an outcome where the mine’s plans can proceed, subject to any reasonable conditions that would address the concerns of those who are opposed to the expansion,” he said.
Jobs and development, as is often the theme with such developments, are at the centre of the pro-mining stance.
Du Preez said 1,600 people were currently employed at Somkhele. If the expansion didn’t go ahead, those jobs were gone.
“The mine started operations approximately 14 years ago and there are currently 1,600 employees. The existing mining areas of the mine have been depleted and, since new mining areas have not been secured, the mine has had to reduce down to one plant from September 30 2020 and is operating at only 47% production capacity. The mine will be forced to shut down completely after two years should it be unable to secure the new mining areas.
“If new mining areas can be accessed, then the mine will have a life of 10 years, employing some 1,600 people,” he said.
With the reduce capacity from the end of September, Du Preez said 150 people had to be retrenched and those employees who remain are earning 50% of their salaries - this was to stave off the loss of a further 250 jobs.
“The closure of the mine would result in the loss of income directly and indirectly for 20,000 people and the loss of training and other benefits that our social investment provides for another 20,000 people in an area where unemployment is up to 90% - and in an area where the mine is the only real employer,” he said.
The expansion, he said, would see 145 families needing to be relocated. He said 128 households had access to the compensation and relocation offers - offers that were “well in excess of the actual value”.
“The minimum compensation is R400,000 per householder, which includes homes plus various other considerations. The average compensation is R750,000 per householder.
“Each householder will be relocating for free to other ITB [Ingonyama Trust Board] land in the Mpukunyoni area of their choice, having satisfied themselves on matters regarding adequacy of, for example, grazing land quality and preferences on neighbours, etc. The overriding objective is that the quality of each household’s social and economic circumstances should be an improvement of their existing situation,” said Du Preez.
Local induna (headman) Langalethu Mkhwanazi told Sunday Times Daily that the community broadly supported the mine, and said it “cannot change its tune” even in the wake of Ntshangase’s killing.
“After research was done at these areas, there was a decision that the areas where coal was found would be mined. The decision was taken by the royalty in this area, and the traditional council, that this is done to create jobs. I cannot disagree with this decision because it was taken in 2007 that mining must take place. As a leader in this area I have to support that decision. Yes, mining should take place because that will help people. Therefore, I fully support it,” he said.
