‘HOW DO EMASWATI BENEFIT FROM MINES?’

LOBAMBA – How do emaSwati benefit from these mines that are being opened in the country?

Members of Parliament (MPs) questioned if the mining of minerals in Eswatini was benefitting emaSwati. The MPs were asking Minister of Natural Resources and Energy Prince Lonkhokhela yesterday, during the annual performance report and budget debate by the ministry’s portfolio committee in Parliament.

Potential

The minister, when presenting the annual report, mentioned that mining was one of the sectors identified to have the potential to increase the gross domestic product (GDP) by two per cent annually. For that reason, the minister told the portfolio committee members that three prospecting rights had been granted to three companies for coal in Mpaka and St Phillip’s as well as diamond at Dvokolwako. The minister also told the MPs that Michael Lee Enterprises was granted a mining licence for Green Chert at Malolotja. The MPs lauded the minister’s zeal in seeing the mines operating, but stated that they were unsure about the benefits these were bringing to emaSwati. Sigwe Inkhundla MP David ‘Cruiser’ Ngcamphalala asked about the credibility of the mining companies that were given prospecting and even mining licences.

The MP said there was a company that was given mining rights around Ngwenya some years ago, but left the country’s roads in a bad state and further disappeared with money that emaSwati were supposed to benefit from. “Did you do a thorough investigation on these mining companies? We have seen in yesteryears where such mining companies destroyed our roads and emaSwati’s millions of investments went down the drain,” he said. Mbabane East MP Welcome Dlamini questioned if emaSwati were getting value for the mining licences that were issued by government.

Licences

“We appreciate the granting of licences, because we want to see activity in the mining sector, but the biggest concern is, are we getting value for issuing these licences? Recently we issued a Green Chert licence and we also have gold and coal licences. With so much mining activity going on in the county, why are we not seeing any tangible benefits?” the MP asked. The MP said Eswatini had been mining gold for a couple of years but it seemed like nothing was happening in terms of economic upliftment. He said they heard that the Lufafa Mine was also operating but how was it helping the economy? Dlamini said even the communities around these mines were not developing. The MP said his investigations revealed that the value of Green Chert was US$80 per kilogramme. He said he was disappointed to learn that with so much value, the company’s salaries started from E3 500 per month, which he said was an insult. The MP said emaSwati needed to see value in the mining sector. Some MPs suggested that the mining sector salaries should at least start from E7 000 due to the profits made from the minerals. He also asked what was happening with the Ngwenya Iron Ore Mine, as it was announced over a year ago that it would start operating.

Questioned

Meanwhile, Nhlambeni MP Manzi Zwane questioned the benefit of Lufafa Gold Mine to emaSwati. “I applaud the ministry for opening the mining sector, because we have been questioning when will we benefit from the sector. However, I would like to know the contribution of Lufafa Gold Mine. What is happening at Lufafa, how many people are hired there?” he asked.

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