Investment management company Magni Investment Holdings’ (MiH’s) subsidiary Lurco Coal Eswatini has been granted a prospecting licence for coal resources at the Mpaka coal mine, in the Lubombo region of eSwatini.
MiH co-founder Ellington Nxumalo, met with eSwatini Mining Commissioner Robert Biyela on October 4 to ink the agreement.
MiH will start feasibility study work and exploration over the next few weeks and expects the timeline from this phase through construction to implementation to take between 24 and 36 months.
The Mpaka coal mine was last operated in 1992, having been mothballed after the previous owner exited the eSwatini market.
The nature of the coal is suitable for smelters, steel and cement industries and will bolster the country’s participation in the export market and create employment opportunities particularly for the youth, MiH says.
eSwatini’s National Development Strategy sets out the long-term development programmes that will move the country towards the improvement in livelihood standards of the Swazi people by 2022.
While much has been achieved, the African Development Bank reports that a large proportion of the Swazi population is not participating in the mainstream economy as the current economic growth is not pro-poor and unemployment remains high.
MiH believes the Mpaka coal mine, once it is up and running efficiently, could be an important contributor to addressing unemployment.
The company says it is committed to delivering stakeholder value by creating inclusive economies through the responsible beneficiation of mineral resources, and plans to meet with the Mpaka community to outline plans and timelines, undertake a needs assessment, answer questions and agree the way forward.