ZAC stakeholders to find solutions to mine’s challenges
06 December 2024, Johannesburg
Press Release
ZAC stakeholders to find solutions to mine’s challenges
On 04 December 2024, the management of Zululand Anthracite Colliery (ZAC) held a fruitful stakeholder meeting that included leaders of the traditional councils representing the mine’s host communities of Matheni, Zungu, Mandlakazi and Mlaba.
Amakhosi, iziNduna, local business representatives, and members of the South African Police Service (SAPS) were among the stakeholders who attended the meeting that was held in Empangeni, KwaZulu Natal. During the meeting, various challenges faced by ZAC in recent years were discussed, including violence, declining production, and the ongoing 13th cheque strike, which has now entered its fourth month. The strike intensified ZAC’s low productivity levels by bringing production to a halt.
The company’s management informed stakeholders about the risks to life and property posed by violent individuals. Disturbing incidents that have occurred so far include the shooting of buses carrying the mine’s employees, the destruction of public infrastructure such as sabotaging power lines and damage to the mine’s property. These incidents are part of 52 reports made to SAPS in recent years, many of which coincide with strike actions or worker dissatisfaction.
The company’s management also reported on the deterioration of the mine’s production capacity, which has threatened its financial sustainability, thus necessitating the issuing of Section 189 notices for retrenchment purposes. Despite investing over R1.3 billion to enhance capacity and develop a new shaft, total production at the mine has continued to decrease. At its peak in 2017, the mine produced a total of 724 764 tons of anthracite, equal to 77 tons per miner. However, this year, production has declined to 209 682 tons, equivalent to 27 tons per miner.
Stakeholders expressed their frustration over the decline in production and worrying trend of violence. They committed to working together to solve these challenges, as they believe that ZAC is too crucial to the economy and the mine's host communities to be allowed to fail.
It provides jobs in an area hard hit by high unemployment and poverty, empowers the communities through various Social and Labour Plan projects, and supplies water to surrounding households. In addition, local business leaders voiced their concerns that their businesses, which are part of the mine’s ecosystem, are negatively affected when the mine is under threat.
Media contact:
Menar Corporate Communication Department
Siphiwe Tame
Tel: +27 11 783 7996
Email: pr@menar.com