Kumba Iron Ore has awarded a R1.6 billion mining contract to a new black owned and community-based joint venture to mine iron ore at its Kolomela Mine in the Northern Cape.The joint venture represents another major advance towards Kumba’s goal of developing sustainable communities and businesses that help transform the South African mining industry. Kumba Iron Ore CEO Themba Mkhwanazi said, “Awarding a R1.6 billion contract to community-based miners is truly ground-breaking. It is the most tangible demonstration yet of Kumba’s commitment to the economic inclusion of local suppliers from our community.” The joint venture will start mining operations at Kolomela’s Kapstevel South project in Q1 2022, with an initial target of producing between 5-10 million tonnes of ore in the 1st year. As part of the contract, Kumba will provide ongoing upskilling and support to the joint venture to ensure quality and safety standards are met. “This is a major step in showing how South Africa can unlock its growth potential through mining. We’ve always seen mining as a catalyst for broad-based development. This contract goes far beyond philanthropy or corporate social responsibility. This is the business of mining, and it will help ensure host communities become direct participants in, and beneficiaries of, the mining operations that take place in their own back yards,” said Mkhwanazi. The contract marks the first in the industry where local community suppliers will be used to run mining operations of this scale and magnitude.
Black community-owned companiesThe joint venture comprises four 100% black community-owned companies:
- AND310 Mining Services is the majority shareholder at 60% and is 51% black female owned based in Mothibistad. Its MD Kabelo Burks Andreas has extensive mining experience with De Beers and BHP Billiton.
- Postmasburg-based Andisa Holdings holds 15% shareholding and has been supplying loading and hauling services to the mining industry for more than 10 years. Its MD is Wayne Witbooi.
- Matshla (Pty) Ltd services the mining and agriculture industries holds 10% shareholding. It is headed by Kennedy Botsheleng, who has nearly two decades of experience in the mining industry, in both underground and opencast mines.
- Peontle Investment (Pty) Ltd also holds 15% shareholding and is based in Boichoko, Postmasburg, and is headed by Mangaliso Kies.