Evolution of Maloma Colliery Mine
. . . a shining example of future-proofing Eswatini’s mining industry, growing the economy, and improving people’s lives
The evolution of Maloma Colliery Limited is a success story of inspiration in investment circles in the country, the region and the larger African continent.
Maloma Mine is one of the subsidiaries of Inyatsi Group Holdings and is now 100 per cent owned and operated by emaSwati. All its proceeds are invested in the local economy.
This was after the company acquired Chancellor House’s shares and today Maloma Colliery is benefiting emaSwati through sustainable employment opportunities.
In 2020, Inyatsi Group Holdings bought out the South African-based company, Chancellor House’s 50 per cent stake, thereby freeing the mine from foreign owners as the other 50 per cent is split between the government and Tibiyo TakaNgwane in a trust for emaSwati.
The history of the company’s shareholding includes Tibiyo TakaNgwane, which holds shares on behalf of the Swazi Nation, partnering with several commercial shareholders over the years at a 25 per cent joint shareholding.
Structure
The shareholding structure included CARBONEX in 1991, Koch Industries in 1996, Xstrata Alloys in 2001 and Chancellor House Holdings in 2010. The latter is a company registered in the Republic of South Africa as Maloma Colliery in 2020.
New legislation, the Mines and Minerals Act No. 4 of 2011 was enacted with the forward-looking requirement that any mining venture should be a joint venture that involves emaSwati.
This should be structured in such a way that the commercial shareholder acquires 50 per cent; 25 per cent should be for emaSwati held in Trust by Ingwenyama and the other 25 per cent held by the Government.
The first Notarial Mining Lease for Maloma Colliery granted in 1991 lapsed in June 2013. Chancellor House Holdings applied for an extension of the Maloma Colliery mining lease for 15 years to June 2028, being the remaining life of the mine. That refers to the known anthracite coal reserves underground, of about six to seven years, extending to a rehabilitation and mine closure period.
The extension of the Notarial Mining Lease was graciously approved and granted by His Majesty King Mswati III and Ingwenyama. Inyatsi Group Holdings, a local entity, purchased the 50 per cent shares held by Chancellor House Holdings.
Maloma Colliery has continued with mining of the underground coal reserves. Inyatsi Group Holdings, realising that the known coal deposits were being depleted fast, applied for a new area south of the mining lease at the Crown Land for prospecting.
His Majesty the King and Ingwenyama granted a Prospecting Lease over an area measuring 5,000 hectares in June 2021 to prospect for coal. Since the coal in the mining lease area was being depleted, Maloma Colliery applied for a mining licence over Blocks A and B for two years from October 2021 in the Crown Land to continue with coal production while prospecting the rest of the area.
The Short-Term Mining Licence was granted by His Majesty King Mswati III and Ingwenyama. Maloma Colliery finished prospecting over the Greater Crown land area and lodged a Mining Rights application for over 2,000 hectares. This was graciously granted again by His Majesty King Mswati III and Ingwenyama in 2022.