Residents of Steelpoort, a small mining town in Mpumalanga where diversified mining company Xstrata plans to construct a chrome smelter, are demanding preferential treatment in employment and procurement processes.
Community members, who started protests last month, formed a group of concerned residents which aims to ensure that 75 percent of business is procured from local suppliers and that the company reduces the radius for sourcing staff from 50km to 10km.
Xstrata has advanced plans to construct the R4.9 billion second phase of its Lion ferrochrome complex. Over 1 000 permanent jobs will be generated and a further 1 800 jobs during the construction phase.
Steelpoort boasts the Booysendal platinum mining project owned by Northam and Mvelaphanda, and the Two Rivers platinum mine owned jointly by African Rainbow Minerals and Impala Platinum.
Jerry Maroga, a spokesman for the concerned group, said the community started protests after Xstrata announced it would only employ those with at least a matric qualification.
“Our people are trapped in poverty and they know the quality of our education is poor, so most people don’t have matric in this area. They are trying to exclude the community from jobs,” he said.
Company spokesman Songezo Zibi said yesterday that a total of 75 percent of jobs were expected to be filled in the community. Xstrata could source items like wood and services from the local community, while more intensive work like bulk earth works could be sourced from outside.
Zibi said the company had advertised for a local recruitment agency to establish a database of prospective employees. “We have not hired anyone because the site has not yet been established. This will be a 24-month project and recruitment will start later. The first step is to build up a database of people who can work at the smelter.”
Zibi said the company would train people in skills like artisanship so they could contribute to the smelter project.
“Villages close to the site of the smelter project want to be considered before those that are far from the smelter. There is a faction that is not happy with the consultative forum.”
He said there were 18 villages surrounding the smelter, and each had representation on the forum. “We want people to know what the project is about, and will be meeting with the community representatives, residents of the village, and traditional leaders.
“I understand that people in the area are poor, but their accusations that Xstrata is not following recruitment procedures are unfounded.”
A community forum comprising traditional leaders, Xstrata, Sekhukhune municipal officials and residents has been established to iron out issues ahead of construction.
A member of the community forum, who spoke on condition of anonymity, said the concerned group of residents were merely business people who were mobilising residents in a bid to get tenders.
“They don’t want to compete for tenders, but they want to receive construction contracts without even applying for them.”
The expansion of the Lion ferrochrome plant will involve constructing and commissioning a smelter with an annual capacity of 360 000 tons. It will increase the Xstrata-Merafe chrome venture’s total ferrochrome capacity to more than 2.3 million tons annually.
Bulk earth works to clear ground for the smelter project will start this month, with commissioning planned for the first half of 2013.
Xstrata closed 0.6 percent up at £14.57 (R158.17) in London. - Business Report
