SEMOGARE AGRICULTURAL PROJECT The mine provided 10 ha of its land to the cooperative, as well as free water and electricity
Mines and municipalities can play a critical role in building local economies, says JSE-listed investment holding company Oakbay Resources & Energy CEO Varun Gupta.
The company’s Shiva uranium mine, in the North West, has partnered with the Matlosana municipality to establish the Semogare agricultural project.
The mine provided 10 ha of its land for the cooperative, as well as free water and electricity.
Gupta highlights that the project currently employs six people from the nearby Tigane township and is assisting in providing food security in the area.
“We started farming in February and now produce spinach, green beans, carrots and beetroot, which we supply to two schools in the area – as part of government’s feeding scheme – each week. We also recently started distributing to an additional six schools,” Semogare agricultural project employee Naomi Moleme tells Mining Weekly.
Gupta says the project hopes to have at least 12 employees within a year, “which, in an area that has an unemployment rate of 40%, is significant”. He adds that the cooperative has also bought a vehicle to deliver its produce to customers.
Moleme notes that the mine provides marketing and business advisory services and seedlings, as well as assistance with soil preparation and other technical services for the cooperative.
“The mine also pays the salaries of the people working on the project,” she adds.
Gupta highlights that the community will also benefit in the medium to long term because expansion plans for the cooperative include developing an agroprocessing plant that will produce jam and tomato sauce, which will be sold to the local community at discounted prices.
“In the long term, the community will get fresh vegetables at affordable prices. This is aligned to the strategy of encouraging people to eat fresh and healthy food, while inspiring communities to start their own vegetable gardens,” he enthuses.
Matlosana municipality macro city planning and development deputy director Alson Khuzwayo says the programme is indicative of how mines can work with local municipalities to boost economic activity and development.
Shiva human resources and transformation manager Joseph Mtshali adds that the Semogare project has proven so successful that the company has entered into an agree- ment with the municipality to create a small, medium-sized and microenterprises (SMMEs) innovation hub to boost local business.
“Shiva has been allocated one of the municipality’s buildings to set up an enterprise development centre to get SMMEs from the local community to become formalised businesses, operating under one roof, where they can put up stalls and display their goods,” he states.
The innovation hub and enterprise development centre are scheduled to become fully operational by June 2016.
Mtshali says the mine’s investment in the local economy was a long-term strategy, as it has been working with two local SMMEs – Mqikela Contractors and Nyamane Transport – for the past four years, providing them with technical support and business skills.
Oakbay financial director Trevor Scott points out that the company also places significant emphasis on upskilling workers and assisting communities surrounding the mine.
He notes that the mine’s in-house training centre provides engineering skills training, learnerships, apprenticeships, artisan short courses, foreman development, planned maintenance and other specialised short courses in line with the Mining Qualifications Authority.
“We invested R3.1-million in training during the 2015 financial year,” states Scott.
Four people who received scaffolding training all qualified as specialist scaffolding erectors and inspectors. Oakbay provided learnerships for 12 employees in the electrical trade and boilermaking, as well as an apprenticeship programme.
The company also provided training and qualification for 25 electricians. “They were provided with practical experience to ensure their future employability,” says Scott.
Shiva’s medical clinic provides healthcare free of charge for employees and their families, as well as for local communities and farmworkers.
“Oakbay also has the Tigane brickmaking project, which supplies local markets in the Matlosana municipality with stock paving, as well as maxi and block bricks,” Scott adds.