AN agreement between the coal mining sector and community representatives in Mpumalanga province have been described as being “on a thin edge”, and were somewhat complicated by a dispute over payment of consultant fees.
Niks Lesufi, senior executive for health and environment at the Minerals Council, told the South African Coal Report last week that the council hoped to deliver an agreement with community representatives in the course of this month.
This was after a task team led by the Department of Mineral Resources & Energy (DMRE) intervened in protests staged by community members near coal mines in Mpumalanga. The protests were so severe earlier this year that millions of rands in revenue were lost.
The Minerals Council also said that its efforts to restore peace and find an agreement with community representatives were not aided by a lack of support from the South African Police Services (SAPS). “Mining companies have been faced with the inability or unwillingness by the SAPS to protect people and assets associated with companies,” the council said. However, Lesufi said there had been progress more recently.
“We are on a thin edge. One or two sporadic incidents do still occur because of internal issues in the EJS (Emalahleni Joint Structure), which represents coal mining communities, or because the process is not happening quickly enough,” he said.
“The situation is still volatile.”
A crucial step in negotiations with communities is the creation of a multi-stakeholder economic forum that is representative of more than a single community, but also includes the local municipality, the Minerals Council and recognised community representatives that can be held to a contract, said Lesufi.
However, the process has been complicated by a dispute between the council and a consultant drafted in by the EJS. According to Lesufi, the consultant requested payment of R500,000 ($35,000) for delivering an agreement.
“An invoice arrived,” said Lesufi who acknowledged the work of the consultant, Mabutho Khumalo, in avoiding a complete breakdown of negotiations with the EJS at one point in their meetings. “We took the matter to the CEOs who said we don’t have an obligation to pay Khumalo as he wasn’t nominated by us.
“We have to adopt a procedurally correct line in respect of the contribution of consultants, and whilst some element of stability came about because of his work, we are also worried about setting a precedent that the community shakes us every time they bring in a consultant,” he said.
