A plan to establish an iron-ore mine in the foothills of Melmoth and eShowe in KwaZulu-Natal is now in motion after screeching to standstill about nine years ago.
The mine, which is owned by Indian mining giant Jindal Iron Ore, was supposed to have started operation in 2016 but was put on hold after the company buckled under pressure from environmentalists and community activists who opposed it.
Sunday World understands the company’s move to start plying its trade in the area is now at an advanced stage.
Mine authorities are awaiting green light from the minerals and energy department to officially commence operations. The proposed open-cast mine includes an iron-ore and concentrate processing facility for exports.
Despite its plan to create jobs and boost the economy of the province, the mine has pitted residents against their traditional leaders in the area.
Mbuyiseni Mncwango, a subsistence sugar cane and avocado farmer, and one of the leading anti-mining campaigners, told Sunday World this week that the consultation process between the stakeholders and the community was a sham.
“This mine is being shoved down our throats. Izinduna (headmen) and inkosi (traditional leaders) are using scare tactics against community activists. They want to hound people out of their ancestral land by colluding with government and mine authorities. We are afraid to speak out for fear of death,” lamented Mncwango.
He also said the mine poses a threat to their main source of income – livestock and sugar cane farming.
Another community activist, Simon Dubazana said the mining project had split the community. “This project has pitted residents against each other, and has led to finger pointing.
“We as community activists are accused of pushing an agenda of white-controlled environmental organisations at the expense of the community. Some activities have fled their homes fearing death,” said Dubazana.
The mining project will see more than 300 homes being demolished to make way for mining operations. The project will also see the exhumation of ancestral graves, which the company says the community will be compensate for.
Jindal Iron Ore is owned by Jindal Steel and Power Mauritius Limited together with a South African BBBEE partner known as Thabang Khomo, which holds a 26% stake.
“Jindal holds two prospecting rights within the Mthonjaneni Local Municipality in KZN. The recovery in the iron-ore price has encouraged Jindal to re-look at the development of the Jindal Melmoth Iron Ore Project.
“The Jindal MIOP (Melmoth Iron Ore Project) will potentially be one of the largest direct foreign investment projects in South Africa in recent years with the estimated direct and indirect capital cost in the order of R15-billion,” said the company.
Jindal also says the project will create about 820 direct job opportunities for locals.
“The South African government, provincial and local municipalities will gain an additional income stream from mining royalties, taxes, permits and fees,” the company said.
The company had also developed a resettlement action plan for affected communities.
On the other hand, the provincial department of economic development, tourism and environmental affairs, appears to be in the dark regarding the proposed mine.
Responding to a parliamentary question recently, MEC Siboniso Duma said: “The MEC and the cabinet are not aware of this project. The department was never aware of the proposed iron-ore mine.”
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