The mining communities surrounding Optimum Coal Mine (OCM) in Mpumalanga on Friday shut down the mine citing the interference of the National Prosecuting Authority (NPA).
The protestors accuse the NPA of blocking the sale of the mine to new investors, jeopardizing the communities’ prospects of securing jobs.
Clifford Masinga, Mpumalanga Active Movement secretary-general, said the residents have noted the NPA’s decision to seize the mine.
Masinga said: “As the court case continues in the Pretoria High Court, we are becoming more convinced that the NPA is not acting in good faith. Its actions are not in the interest of those most affected by the closure of the mine.
“For the past four years, we have been watching as the mighty and powerful play football with our livelihoods, but we are now growing even more hopeless when we see that a state institution meant to protect the poor and vulnerable seeks to oppress us.”
The OCM was purchased from Glencore in 2016 by the Tegeta Exploration and Resources, which is owned by the infamous Gupta family.
Masinga said a 2016 report by the public protector revealed how Tegeta had funded the acquisition price.
“The money was ultimately paid to Werksmans Attorneys Trust account for the benefit of Glencore and/or the Loan Consortium,” said Masinga.
“Assuming that these funds were the proceeds of crime, Glencore, Werksmans, and the Loan Consortium received the benefit of these funds and should have long been made to account by law-enforcement agencies.”
Masinga added that the NPA is not willing to prosecute or charge the entities that are accused of wrongdoing.
“Given the tough economic conditions at the time, OCM entered into business rescue in February 2018. The NPA took no action or showed no interest at that point.
“Initial post-commencement finance was secured to protect employment and to keep the mine operational while in business rescue. Even at that stage, the NPA took no action or did not show any interest at that point.
“The mine was placed into care and maintenance in late 2018, with a devastating negative impact on the employees and the surrounding communities. Still, the NPA took no action or showed no interest.
“Various bid processes were completed by the BRPs [business rescue practitioners] with such being common knowledge and advertised internationally. Ultimately various business rescue plans were published and not supported by the creditors. Still, the NPA neither took action nor showed any interest.
He said further: “Ultimately, and after the local community and ex-employees had suffered hardship for over two-and-a-half years, a business rescue plan was approved by 88% of OCMs creditors in September 2020. Still, the NPA took no action and did not show any interest.”
The approved plan proposed that Liberty Coal would take over the assets and business of OCM, bringing it back to full production, he added, noting that the community comprehends the costs to undertake this venture exceeded R1.2-billion.
“In the interim, the business rescue practitioners of OCM entered various contract mining agreements to allow third parties to mine at OCM on a royalty basis. Over 800 jobs have been created already.
“An additional 1 500 jobs will be created directly and indirectly when the mine is under Liberty Coal’s ownership and operation. The positive impact on the local community and the South African fiscus from the taxes and royalties cannot be overlooked.”
He said they find the NPAs legal proceedings “objectionable and insensitive” because these will cause the business rescue plan to fail.
“Instead of targeting the monies which were paid to Glencore and Loan Consortium, which was allegedly the proceeds of crime, the NPA instead seeks to take over OCM with a view to selling the mine if it is successful.
“If the NPA is successful and the business rescue plan fails, OCM will not be recapitalised, jobs will not be created, and OCM will likely be liquidated,” explained Masinga.
He added that the NPA should instead pursue those who seemingly benefited from the proceeds of crime like Werksman and Glencore to recover the money.
As they protested, the affected communities of Middelburg, Hendrina, and eMalahleni said: “We will, therefore, without any fear be mobilising our masses to occupy and take over
the mining assets and operations of Optimum Coal.”
#013NewsFlash | WATCH: The community of #Middelburg and #Hendrina have arrived at the #OptimumCoal mine to demand that the NPA stop frustrating the sale of the mine so that people in the community can work again. They have are threatening to occupy the mine if the #NPA continues pic.twitter.com/Gww2w2a84q
— 013NEWS (@my013News) March 11, 2022
🔴"Senzeni Na", Asks Mining Community🔴
Communities surrounding the Optimum mine are today protesting against the NPA. The communities say they're hungry and don't have jobs although new investors being willing to buy the mine & employ them of which te NPA is blocking pic.twitter.com/GWCruud36V
— The Insight Factor (@insightfactor) March 11, 2022
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