MBABANE – Eswatini’s coal sector has taken another heavy blow following the suspension of operations at the Mhlume Anthracite Coal Mine.
The mine, operated by Eswatini Anthracite under New Frontier Coal Investments (Pty) Ltd—a subsidiary of Sub-Saharan Energy (Pty) Ltd—has officially halted production, resulting in the retrenchment of 86 employees. This was confirmed by Labour Commissioner, Kingdom Mamba, who stated that all affected workers had received their terminal benefits.
Coal mining has historically been one of the cornerstones of Eswatini’s extractive industry, with the country recognised for producing high-grade anthracite, considered second only to Siberia’s. Eswatini Anthracite was granted a 25-year lease to mine at Mhlume, but in recent months, the global downturn in demand has caught up with operations.
When reporters visited the mine premises, activity had completely ceased and the gates were locked. Workers interviewed from surrounding communities such as Sihhoye expressed uncertainty about whether the mine would reopen. One employee revealed that signs of financial strain had been evident for about three months as demand dwindled.
“What we’ve been told is that the market has dried up. We can only hope things stabilise so we can return to work,” he said.
Efforts to obtain comment from mine management were unsuccessful, as Managing Director Peter Grey and Project Coordinator Nozwelakhe Mamba did not respond to inquiries.
The Labour Commissioner explained that market volatility, particularly due to fluctuations in the South African Rand, had severely undermined the company’s viability.
Wider Industry Struggles
This latest shutdown follows a string of similar challenges across the sector. Just weeks earlier, Maloma Colliery Limited retrenched 145 workers after its largest customer reduced operations, and an additional 215 employees were later released when the company scaled down production.
South Africa’s smelting industry—a key consumer of Eswatini anthracite—has been shrinking, with 14 smelters closing their doors last month. The closures have forced major coal suppliers to cut costs, resulting in over 3 500 job losses regionally, according to the South African Broadcasting Corporation (SABC).
Other multinational companies, including ArcelorMittal SA and Goodyear, have also wound down their operations, worsening the employment crisis. Eswatini currently faces an unemployment rate of 35.7 per cent, with youth unemployment sitting at 58.1 per cent.
Government Responds
Commissioner of Mines Dr Noah Nhleko confirmed that the Mhlume Mine’s management had communicated the situation to his office. He explained that challenges in the South African market—rising electricity prices, the imposition of an export tax, and difficulties in setting up a processing plant—had crippled operations.
“They have followed the right procedures, including notifying the labour commissioner,” Dr Nhleko said. “As government, we remain hopeful that the market will recover. We are always concerned when emaSwati lose their jobs, but we also recognise that these are global challenges.”
For now, the fate of the Mhlume Anthracite Mine—and the livelihoods tied to it—remains uncertain.