Unlocking the future of mining in Eswatini
The official opening of the new Shaft 1 of Maloma Colliery Limited heralds a new future for economic growth and the mining sector of the country.
The project also takes the growth and strengthening of the mining sector to new heights, in the process opening new opportunities for emaSwati to get sustainable jobs, and for the economy to thrive.
This transpired when His Majesty King Mswati III officially opened the new Shaft 1 at the premises of Maloma Mine on March 22, 2024. The highly successful ceremony was also attended by Her Majesty the Indlovukazi.
The King noted that Maloma Mine was adhering to the principles of responsible, sustainable, and responsive business practices. The mine provides quality services and promotes development in communities where it operates.
“This project brings hope and signifies the revival of rural areas, particularly Lubombo and Shiselweni regions. It is indeed gratifying to see that Maloma Mine is expanding its operations in the country. This can only mean more employment opportunities for emaSwati, economic growth for the country and businesses will flourish,” His Majesty said.
“Clearly this is a very significant investment that bears testimony to our attractiveness to domestic and foreign direct investment in particular, as well as an explicit expression of confidence in our policies for investment and business.”
Improve conditions
His Majesty implored Government working hand in hand with key players in the investment creation and promotion sphere, to continue to strengthen and improve conditions and policies to accelerate economic growth and enable businesses to operate optimally.
His Majesty said he has full confidence that the Kingdom of Eswatini will in the short to medium term be the centre and springboard of responsible, prosperous, and sustainable mining, offering valuable lessons and experiences to the rest of the world.
He called for constant engagement among key stakeholders around how the country could leverage on the opportunities in the mining value chain and to breathe new life into mining, to strengthen mining value chains, and to enhance beneficiation.
The King said mining has a crucial role to play in building the economy of tomorrow.
Worth emphasising is that this massive project will bear massive financial and employment benefits. Hundreds of people will be thrown a real lifeline, and the poverty alleviation drive will be cemented.
In addition to job creation opportunities, other related and add-on infrastructure will emerge from the project. These include roads, electricity, telecommunications, fibre optic networks, Wi-Fi, security services, growth point in the form of human settlements with housing infrastructure, health facilities, water, hospitality and tourism services, market for goods and services for SMMEs and many others.
All in all, the project will impact positively on rural development and create new opportunities for the area and the country.
Meanwhile, since independence in 1968, mining has been a pillar of the Eswatini economy, and coal and quarry extraction form the biggest chunk of the production.
The Ministry of Economic Planning and Development and the Central Bank of Eswatini recently revealed that the country’s mining and quarrying sub-sector, grew by 46.5 per cent in 2023.
Coal production
The sector was boosted by an acceleration in coal production, which reached a record high of 128,815 metric tonnes in the third quarter of 2023, more than double the average quarterly volumes recorded in the first half of 2022, according to the analysts.
The remarkable surge in coal production was attributed to the mining of high-yielding crown land, and Maloma Mine was leading the industry.
The coal industry also benefited from the increased demand for coal in the region, especially from South Africa, which faced continued load-shedding issues.
Government forecasts are that the mining and quarrying sub-sector will have a positive outlook in the year 2024, going forward. Demand from international markets has surged owing to geo-political disturbances, including the Russia-Ukraine conflict which has resulted in supply-chain constraints. Regional energy challenges that have caused load shedding in South Africa and other countries, has also had the effect of increasing demand for coal.
Government projects that the sub-sector will average 5.6 per cent in the medium term which is between 2025 and 2026.
Clearly this is a very significant investment that bears testimony to our attractiveness to domestic and foreign direct investment in particular, as well as an explicit expression of confidence in our policies for investment and business