By KWANELE DHLADHLA | 2022-04-04

An investment of up to E2 billion to mine anthracite coal in the kingdom by SA mining giant, Lurco, is on the cards.

This was disclosed by SA High Commissioner Advocate Thokozile Sipamla, who was represented by Political Counsellor Wouter Zaayman, when making an emphasis on the benefits which accrue from cordial relations that exist between the two countries.

Zaayman said the company, which promises to employ up to 80 Emaswati, was currently in the process of engaging all relevant authorities in the kingdom prior to commencing operations soon after receiving approval. It should, however, be clarified that the name of the keen investors was not revealed by Zaayman in the open session but uncovered by Eswatini Observer after independent investigations.

“The possible establishment of a SA-Eswatini Chamber of Commerce came to my mind last week when we met various South African businessmen who are going to establish a long term business venture in Eswatini with a direct investment value of E2 billion,” said Zaayman in his official address.

When probed soon after the breakfast meeting as to whether the company had made any applications for registration to operate in the kingdom, Zaayman could only say details of the investment would be announced in due course when all necessary approvals have been obtained.

He mentioned that there would be a number of spinoffs for local companies and the economy at large since the company would also be exporting the coal through Mozambique.  

In its official website, it was explained that Lurco acquires and operates quality assets, focused specifically on the beneficiation of raw minerals, the supply of coal and chrome products to local and international power utilities and smelters and the distribution of refined end-products.

Approach

Headquartered in Johannesburg, South Africa, Lurco operates with integrity, transparency and collaboration, ensuring that all business decisions are based on a deep, functional knowledge of mining and deal-making.

“This approach is underpinned by leveraging local sector and legislative insight, driving socio-economic development as well as building, and maintaining, strategic partnerships with both investors and communities,” it was explained.

In line with the goal to maximise job creation for Emaswati, Minister of Commerce, Industry and Trade Manqoba Khumalo recently disclosed that five mining licences were issued to Africa Gold, Ngwenya Iron Ore, Mpaka Coal Mine, Mhlume Coal Mine and Mpakeni Quarry Mine.

The issuance of mining licences was hoped to assist towards meeting the ambitious goal to create over 30 000 jobs through implementing the Economic Recovery Plan (ERP). ERP had three priority areas, which were to grow the country’s Gross Domestic Product (GDP) – to change the macro-economic conditions, create jobs – increase productive economic activities and fast-track government revenue mobilisation – to improve the fiscal space which, in turn, would provide resources to implement the National Development Plan (NDP).

Over the last three years, a total of 18 152 jobs were created by government, courtesy of the ERP. In the year 2018/19, at total of seven companies were established and created 1 854 jobs.

Six of the companies were in the textiles sector as two expanded their investment. There was a single investment in the wine processing industry.

In the year 2019/20, a total of 11 companies were established and created 4 917 jobs.
Komati Downstream Development Project (KDDP) and Lower Usuthu Smallholder Irrigation Programme (LUSIP) projects in the agriculture sector contributed 3 714 and the remaining were from the construction of the Kellogg’s factory, expansion in the textile sector, forestry, ice sugar, PvC pipes and rum processing.

In 2020/21, 49 new investments were realised and availed 11 381 jobs. These jobs came from a mix of retail, commercial banks, property development, investment companies and manufacturers’ investment on infrastructure such as shopping complexes, petrol filling station, and warehouses, together with hardware stores, among others.

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