Poor edged out of coal bonanza

Johannesburg - Coal mine companies are raking in millions in profits as the demand for their product in Europe has soared in the past few months while communities in and around the mining operations are still living below the poverty line.

As a result of the Russian-Ukraine war and the sanctions against Russia, European countries have turned to South Africa, Colombia, Australia and the US for cheap alternative supply of coal and gas.

That has seen the price of coal shoot up. Currently, the international markets buy coal from SA at $345 (R5 826) per tonne.

In the first five months of 2022, European countries imported more than three million tonnes of coal from South Africa compared to 500 000 in 2021. That represented an increase of 40% more than the volume of 2021.

Russia supplied 45% of the European market with coal but since the war, and as a result of sanctions, European countries have stopped buying energy supplies including gas from Moscow.

While that is good news for the South African companies, the reality on the ground paints a bleak picture of abject poverty, unemployment, illnesses and a lack of development in spite of the financial boom for the mining companies.

The Sunday Independent spent a few days in Mpumalanga in an area that is surrounded by at least nine mines, the majority of them being coal producers, to see how the good fortunes have benefited the locals.

A few kilometres from Middelburg is Komati Village which is surrounded by mines and an Eskom power plant where one encounters different groups of adults sitting at various corners looking for jobs early on a Thursday morning.

A drive through the area highlights a large number of the unemployed adult population that are loitering on the streets. When one speaks to them, they give an impression that they have become accustomed to this life of abject poverty and hopelessness.

They wake up in the morning and those fortunate enough to be employed, a tiny fraction of the population, head to their different jobs while those languishing at home occupy the pavements on the street corners. One of them is Sipho Masuku, who keeps hoping that someone will offer him a small job to make ends meet.

Masuku and hundreds in his community have an expectation that the number of mines in their area, including the power station, is sufficient to create job opportunities and to develop the areas so that nobody has to go to bed hungry.

But sadly, that is not their reality, only poverty and unemployment is real for them.

“Who is working in these mines and at the power station when there are so many of us unemployed in the area? The mines don’t even participate in social upliftment projects. The majority of our youths have now turned to nyaope because there is nothing for them to do here,” he said.

Masuku added that the community thought there would be a spin-off from having mines around such as jobs and small businesses subcontracted to do odd jobs such as cutting grass. But the mines are demanding matric certificates for cleaners and tea makers.

“Is the sugar being weighed and measured using complicated machines? The majority of the locals never went to school because there are no high schools in our area.

“They are not ploughing back to even change the situation for the future generation. Communities around the mines are not benefiting at all. Our mining charter is also not protecting us. We are also questioning their Social Labour Policies (SLPs),” he said.

There is only one primary school and once the children graduate they have to go to a school in Middelburg or Witbank more than 40km away, residents say.

From Komati Village, right around the corner there is Emahlathini Farm which is next to Thungela Mine's Goedehoop Colliery. From the main road to where the shacks start is a gravel road that is undrivable when it rains. Smoke from coal-powered stoves billow over the shacks as locals try to collect scrap metal to sell to get extra cash in their pockets. Others are just basking in the sun as a means of keeping warm. We find Singisile Khuza who is in his seventies and he becomes emotional as he speaks of the situation in his community.

“There is no benefit or change to our lives. We have been living here for many years and have watched different companies come and go. We have no community members working at these mines. As you can see, our people are just languishing here doing nothing. People that get lucky to get temporary jobs are those with close ties to the ward committee,” he said.

Maxwell Mtshali echoed the same sentiments.

“We only see taxis dropping off and picking up workers at the gates while we remain unemployed. We see people from as far as Hendrina and Witbank being employed and we are overlooked,” he said.

Mtshali added that life used to be a bit bearable when the mine was owned by Anglo.

“Water is a serious challenge for us. The only benefit we have had was the water we used to get but now there is nothing. I now have TB as a result of the dust and chemicals that have been billowing in our area for years. The mines don’t even assist with getting us to clinics or assisting with anything health-related. Anglo used to be better. They gave us water and food parcels,” Mtshali added.

Asked where the miners who used to work for Anglo stayed, the locals said there was once a village with “nice units” which has since been demolished.

Leaving the area and getting on the R547 road towards Witbank, one comes across a small community calling itself Kwa Juma on Van Dyksdrift Farm on the left-hand side. Again one is met by billowing smoke in the air from coal and burning of wood as electricity is a luxury reserved for those who can afford it.

Only four houses have electricity in the area. Water is obtained from three JoJo tanks along the only two gravel roads in the area. Resident and ward committee member Bulelani Mbobo said locals survived on less than R300 a month, money they have to hustle now since the government stopped the grant.

“The majority of the community doesn’t work. We are struggling to make ends meet. People have now resorted to farming mealies to sell on the side of the road just to be able to put food on the table. Every once in a while, we will go pick up leftover coal and try to sell that too,” he said.

The locals feel let down not only by the mining companies but by the government too. Mbobo said apart from the economic hardships, their health doesn’t seem to be of concern to anyone.

“Dust is a serious problem for us. We inhale it and get sick. It doesn’t matter how often you clean your house, there is always dust from these mines. We are also getting sick from that but there is no compensation whatsoever,” he said.

While communities living near coal mines have poverty, unemployment and health challenges, the Department of Mineral Resources and Energy under the stewardship of Minister Gwede Mantashe hides behind the “policies” it has in place and further entrusts the licence holders to deliver on their SLPs. Contacted for comment on the issues raised by locals, particularly unemployment, the department's media desk responded by saying:

“Unemployment is a challenge throughout the economy. The development of an area requires collaboration between local government structures and those businesses operating in the area. The legislation that the department administers (the MPRDA) provides for mines to promote employment and advance the social and economic welfare of all South Africans.”

Further asked how it ensures mines do what is contained in their SLPs, the department claimed to conduct inspections to monitor and enforce compliance.

According to the department's policies, Regulation 46 (c) (iii) of the MPRDA, 2002, requires mines to identify infrastructure and poverty eradication projects that the mine would support in line with the Integrated Development Plan of the Municipal area in which mines operatesand the major sending area. The residents of the areas visited however don’t see that happening.

While the communities live below the poverty line, the mines seem to have not yet kicked off their SLP projects. Thungela’s Tarryn Genis this week said the company owns interests in, and produces, its thermal coal mainly from seven mining operations in Mpumalanga including Khwezela Colliery, Greenside Colliery and Goedehoop Colliery.

“Each Thungela operation has a Social and Labour Plan attached to its mining rights. In the case of the SLP for Goedehoop we are committed to the provision of providing an important focus area is the provision of core and critical skills. Over the next five years, we aim to provide skills development in safety, engineering and emergency response.

“Goedehoop’s commitment to Local Economic Development through the 2020-2024 SLP includes the provision of a sustainable water supply project to the Steve Tshwete Local and the provision of a mobile clinic to the value of R3 million. 96% of the current permanent workforce at the Goedehoop Colliery comes from local communities,” she said.

The company added that it was driven by its purpose to responsibly create value together for a shared future.

Seriti Mine on its side says in terms of the priority needs of the mine community and labour sending areas, especially in Emalahleni municipality, its core focus is on the supply of basic services, water treatment plant and training to promote access to job opportunities, specifically driver’s license, among others.