African Eye News Service (Nelspruit)
Sizwe Samayende
19 July 2002
Barberton — More than 60 beneficiaries of a R1, 5-million gold mining project in Mpumalanga claim they have been forced into poverty and exposed to abuse since running their operation legally.
The small-scale miners, affiliated to the Simunye Mining Association in Louw 's Creek near Barberton, also say that minerals and energy affairs deputy-minister, Susan Shabangu, and local politicians have ignored their pleas for intervention.
"Our lives have become worse and we're expected to survive on R400 a month," said disgruntled beneficiary and Simunye board member, Khanyisile Magagula.
The Louw's Creek residents were digging gold illegally on abandoned mines before the government intervened in 1998 and formed the mining company Eyethu.
The miners were given shares in the company and a permit to pursue legitimate mining at Eldorado Gold Mine.
Eyethu ran up a R570 000 tax debt but Shabangu came to the 'rescue' and dissolved the association's board of directors and formed Simunye, with representation from the provincial government.
A private company, Khumo Bathong Holdings (KBH), was contracted to teach the miners modern mining techniques to ensure optimum production.
Magagula however said KBH had refused to show them how much gold their production yielded, and how much money they were making.
"We're not allowed to go to the refinery. They keep on telling us the concentrate we dig doesn't have gold but they keep on asking for more," she said.
KBH official Derek Webbstock this week said that the project was not viable and his company has decided to withdraw.
"There's no enough gold concentrated in accessible areas .it's sporadic," Webbstock said.
He however refused to give details about KBH's contract with the department and what "loss" they would claim from the government.
Webbstock insisted that operations were transparent at KBH and that financial details were openly discussed at board meetings.
Minerals and energy affairs spokesman Khanyo Gqulu said the department hadn' t received any complaints from the miners and weren't aware that KBH intended to pull out.
During Simunye's launch, it was estimated that the project would generate at least R450 000 a month.
The community was told that aside from digging and selling raw gold, they would be taught to run jewellery businesses so that they could exploit the booming tourism industry in the Kruger National Park and the Maputo Development Corridor.
Louw's Creek resident and miner Simon Maluka said: "It was better when we were digging on our own. One person would make R2 500 to R6 000 a month, but now we have machinery and only get R400".
"We've been mining there for too long to be fooled about low productions," he added.
Nkomazi municipality mayor and Simunye board member, Selby Khumalo confirmed that the diggers had been unsuccessful in setting a meeting with the provincial government.
"The board hasn't sat for three months," Khumalo said.
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