Page 5 - IDC

CITY PRESS, 15 NOVEMBER, 2015 11
news

A
PROJECT IN

PARTNERSHIP
WITH THE
SIZWE SAMA YENDE The IDC’s
sizwe.yende@citypress.co.za

600-hectare farm 10km outside IDC mining
Delmas in Mpumalanga is alive
with heavy machinery and industry
workers.
Tractors, loaders, backhoes,
Adrillers, long-haul trucks and a funding
workforce of about 300 people are extracting
coal to fuel power stations in the electricity-
generating hub of Mpumalanga’s highveld Number of
region. businesses funded 31
Nearby, new tar roads are being built for since 2010:
access to the mine’s various operation centres. Number of
A few months ago, it seemed like a pipe businesses funded 6
dream that a black-owned company could run in 2014/15:
such a huge mining operation, but Mbuyelo
Coal is doing just that after a R210 million cash Black-owned Total investment since 2010:
injection from the Industrial Development R8 684 900
Corporation (IDC).
Many commercial banks turned down
Mbuyelo Coal’s applications for a loan to start Total investment in 2014/15:
Manungu Colliery – which was understandable, R2 473 200
says its 33-year-old chief financial officer,
Kervin Mthombeni, because the industry has
Number of jobs
been so high risk. mine excels created since 2010: 22 083
Not only have there been tensions between
unions and owners, the financial situation at
Number of jobs
Eskom means that investors are reluctant to created in 2014/15: 2 0 63
provide such a large loan to an emerging
company with the power utility as its major
client – even with a 15-year contract. ON TOP The Manungu Colliery outside Delmas employs 300 people, which it expects to double in three years PHOTOS: LEON SADIKI 4 8 47 Number of jobs saved since 2010:
“For a black-owned company that has no
funds, it just could not be easy,” says After trying for a decade to secure funding,
Mthombeni.
“We’ve been trying to raise funds since
2005, when the company started. We would Mbuyelo Coal finally got off the ground
get some money, but it would run out before
we had made any meaningful progress. = 1 00
Unfortunately, until you start producing, that’s thanks to a loan from the IDC
what any emerging business has to juggle … get 2 4 00
funds, use them and, when exhausted, start Number of jobs saved in 2014/15:
raising them again. The commercial banks
were reluctant to invest.”
The funding struggle began after the
company secured the prospecting and mining Reaching for his dreams = 1 00
rights, and after it bought the farm for
R70 million.
Initially, it partnered with IchorCoal, an Black empowered
established mining company with interests in He’s hustled and worked at a bottle store, a seedling company and
16 mines in Mpumalanga and Limpopo, but it a waste firm, but now Sibusiso Jiyane (29) has bagged his first businesses
got its big break in February when the IDC permanent job.
agreed to the loan. Eight years ago, Jiyane had to drop out of school in Grade 11 Number of
“We met the IDC and submitted our mining when his father lost his job. businesses 40+
rights documents, feasibility studies and Today, the man from Delpark Extension 4 in Delmas is a tractor- funded:
business plan. Within 45 days, we were signing loader-backhoe operator. The gigantic workhorse he uses to scoop Total R2 billion +
the loan agreement,” says Mthombeni. coal into trucks is more commonly called a TLB. investment:
“We will always be grateful to the He loads coal into trucks, which then distribute it to Eskom’s
IDC. It fulfilled its mandate to power stations in Mpumalanga, including Kusile, Camden, Grootvlei,
develop a black-owned Duvha, Hendrina and Majuba. Where those
company.” On his basic salary of R5 000 a month, which increases to
Mthombeni says the mine R9 000 with overtime pay, Jiyane supports his two daughters, aged mines are
has about 500 million tons of 10 and 11, his parents and a 15-year-old sister who’s currently in
coal, which guarantees it a Grade 9. Gauteng
lifespan of at least 15 years. “This is my first full-time job – it has given me hope for the Number of
Over the next three years, future. My dreams are being fulfilled,” he said. businesses: 3
the company plans to Jiyane has begun building a four-roomed house for his family and, Investment value:
increase production and in the two months he has been employed at Manungu, has R41.2 million
double the workforce. completed one room.
The 300 jobs the mine Jiyane learnt how to drive a tractor, and later a TLB, as a Jobs created
has already created are Kervin Mthombeni teenager working as a labourer on a farm on weekends and during and saved: 384
much needed in the Victor school holidays.
Khanye Local Municipality, which He went on to work as a TLB operator at SA Zero Waste and
has a population of 75 452 and Kendal Mine in Emalahleni on a series of short-term contracts. Free State
an unemployment rate of Before that, he sold liquor at a bottle store, but when that business Number of
28.2%. Of the unemployed, was sold, he lost his job. businesses: 1
38.5% are young people. “I decided to join the Manungu mine because it gave me a better
Mthombeni says it is still offer and opportunity. I see a future here. I can plan my life Investment value:
too early for Mbuyelo Coal Sibusiso Jiyane properly,” he said. – Sizwe sama Yende R220 million
to start any meaningful Jobs created
community and corporate and saved: 159
social responsibility projects,
but it is planning to help the
municipality rebuild a public North West
library that was burnt down Rirhandzu Siweya
during recent service- Number of
businesses: 6
delivery protests.
“We’re in the first phase of the mining Investment value:
project, so the focus is still on training and R4.1 billion
employing local people. Later, we will see how Jobs created
we get involved in community projects,” says and saved: 17 346
Mthombeni.
Rirhandzu Siweya (40), a former corporate
and commercial lawyer, founded Mbuyelo Coal Limpopo
10 years ago – shortly after the passing of the
Mineral and Petroleum Resources Development Number of
Act, which gave the state power to grant, businesses: 8
control, administer or refuse prospecting and Investment value:
mining rights and permits. R2.39 billion
Siweya saw an opportunity and teamed up Jobs created
with former miner Donald Muller to start and saved: 6 1 43
negotiations with Mpumalanga farmers about
possible partnership deals after analysing the
province’s coal fields using data from the KwaZulu-Natal
Council for Geoscience.
Mbuyelo Coal applied for about 400 mining Number of
rights. Many were unsuccessful, but Manungu businesses: 1
Colliery is one of five it managed to bag. Coal is loaded for transport at the Manungu Colliery Investment value:
R80 million
Jobs created
and saved: 584
IDC boss says mining still offers a lot of value

Mpumalanga

Number of
NICKI GÜLES There may be more rocky times ahead, adds “We are now more aggressively assisting creating value for all their stakeholders. businesses: 9
nicki.gules@citypress.co.za Tunyiswa, because “we may not yet have emerging miners who can use this as a “We want the surrounding community to be Investment value:
reached the bottom of the market”. springboard for export markets.” seen not as an expense but as part of value R796.2 million
It’s been rough lately for Mazwi Tunyiswa, “We have to brace ourselves for For Tunyiswa, it’s about creation. The mines must be sustainable.
head of the basic metals and mining unit at the a little bit longer, but the beneficiating the country’s Marikana was a classic example of Jobs created 0 17
and saved: 3
Industrial Development Corporation (IDC). The upswing will come.” resources to create value. unsustainable mining,” he says.
mining industry is struggling because of the Mining is a cyclical business “The IDC is looking to “We include this as part of our due diligence
decline in commodity prices. and commodities that are in unlock value in the mining on applicants for funding. For example, you
The IDC has been assisting the mining fashion or demand change over sector to the benefit of South cannot have water for mining but no water for Northern Cape
industry since the early 1950s, when Foskor time. It is now imperative to African society. We also want the mining community or the people who
was established. Today, R23 billion – almost a protect existing mining assets to lower costs to benefit work there.” Number of
businesses: 2
quarter – of the corporation’s R100 billion book and save them for future use. downstream manufacturers Mining contributes R292 billion to South
is made up of mining investments. The upside is more demand and increase the number of Africa’s GDP. It employs 496 000 people Investment value:
“Mining and metals are very important to the to fund coal businesses. jobs in the metals value directly and there are 1.4 million indirect jobs. R3.1 billion
life of the IDC,” says Tunyiswa. “A lot of equity “There is more demand for Mazwi Tunyiswa chain,” he said. “It remains a large, key sector which makes a Jobs created
investments are struggling and dividends are coal because of Eskom, whose Tunyiswa says the IDC wants key contribution to the economy. If we use our and saved: 267
down. It’s not about the fundamentals of the black economic empowerment policy is quite to see 21st-century mining companies who are resources wisely and beneficiate, it has the THEUNS KRUGER, Graphics24
industry – it’s a market issue.” good for emerging miners. socially and environmentally responsible while potential to create more jobs,” says Tunyiswa.