Liberty Coal is being accused of mistreating its host community in Mpumalanga after dissolving the stakeholder engagement forum “to avoid its social labour plan (SLP) responsibilities”, say members of the forum.
The members of the forum, which operates in Middelburg and surrounding areas, said replacing the structure with the mining firm’s preferred individuals would give the mine the opportunity to manipulate the new structure and overlook the communities in the area where it operates.
“It is important, firstly, to indicate that a stakeholder engagement forum was established in line with the requirements of the Mining Charter in that companies ought to plough back into the surrounding communities which are directly impacted by the operation,” said Thulani Mthethwa, a member of the forum. Recently, the community and members of the forum protested and handed over a memorandum of grievances to the firm.
Mine announced decision to dissolve forum in December
The memorandum stated that in December, the mine announced its decision to dissolve the forum.
“The decision was taken to dissolve the structure without following the proper procedures,” said the memorandum.
“This was not done constitutionally and there was no consultation with the structure which is illegal and of concern.
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“The structure was put in place for the reasons which obligate mines to provide structured community consultation and SLP reporting.”
The demands included the requirement of stakeholder participation for activities with socioenvironmental impacts and local economic development.
“These frameworks reinforce that stakeholder platforms must be legitimate, functioning, participatory and transparent. Therefore, our existence as a structure was a legal obligation.”
Forum accused management of appointing new contractors without informing them
“The forum also accused mine management of appointing new contractors without informing the forum. Transparency, socioeconomic development, economic empowerment and the development of the communities is in jeopardy due to the lack of communication, care and due diligence,“ the memorandum said.
The new contractor was appointed without following proper procedure, as there was no advertisement for the vacancy.
“With this process, a number of small community businesses that conducted work with the previous contractor were negatively affected.
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“We demand that all community businesses affected be reinstated with immediate effect.
“We are aware of your attempts to form a new stakeholder engagement forum as per your recent announcement for a community gathering to elect a forum.
“We want to make it clear to you that there will be no formation of a new forum, as we have a legitimate forum in place.
‘Attempt to divide and manipulate the community’
“We view your actions as an attempt to divide and manipulate the community, and we will not allow it.
“We demand an immediate restoration of the existing forum.”
Liberty Coal chief executive, Hlayiseka Chauke, did not say why they decided to dissolve the forum, but spoke only about the appointment of the new contractor, which the community has complained about.
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Chauke said the appointment of LMS as the principal mining contractor at the mine represents an “exciting chapter in the mine’s fortunes and potentially is the most significant catalyst in returning the mine to profitability”.
He said Liberty Mine Services would conduct an employment drive over 2026 in line with Liberty Coal’s planned expansion into dragline and underground operations.
This is expected to result in about 500 new employment opportunities at the mine, Chauke said.
500 new employment opportunities
“This is in addition to the employment and local business opportunities arising from several major capital projects being undertaken by Liberty Coal, as part of its overall refurbishment of infrastructure and facilities.”
Mining expert David Van Wyk said stakeholder forums and community trusts often end badly because of how they are structured.
“Normally trusts have more representation from the mining company and the government than from the community. This means the community gets outvoted in every decision.”
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