Swaziland’s diverse and ancient rock structures are rich in minerals and the country’s mining sector dates back to ancient history. The dormant iron ore mine in the western Ngwenya mountain, which ceased operating in 1975, has been developed into a tourist attraction and lies next to the oldest iron age site in the world. Minerals are vested in the King, in trust for the nation, with mining royalties paid to Tisuka Taka Ngwane, a trust established for the nation by King Sobhuza II in 1976. The Monarch, in consultation with Libandla (meeting), selects a Minerals Committee to advise on issues pertaining to mineral exploration and exploitation. The Commissioner of Mines is responsible for receiving applications for prospecting licences and mining rights, which are passed on to the Minerals Committee for the granting of the rights. A Negotiations Committee ensures that lease terms provide for optimum utilisation of natural resources. However, changes to this structure are indicated with the two committees to be scrapped and a Mineral Management Board put in place. This development is designed to do away with the frustration faced by potential mining investors due to the long process (up to two years) associated with obtaining mineral rights.
Performance
The overall performance in the sector, which is dominated by quality anthracite and quarried stone, has steadily declined since the closure of the Dvokolwako diamond mine in 1997 and later the ceasing of asbestos mining in northern Swaziland. In 2007/8 there was a decline in both coal and quarried stone production, and the value of the sector reduced by 47.3%, following growth of 15.8% the previous year. Production was down by 22% to record 241,238 tonnes. However, revenue increased by 13.4% to E102.5 million due to more attractive anthracite prices, which were up by 32%. This was due to increased global demand for the commodity, particularly for power and steel production. Global prices are predicted to remain high with demand particularly driven by India and China. Weak ground conditions at the Maloma mine have resulted in below average yields. A third shaft, which opened in 2007, increased the working area and will have a positive impact on production.
Quarried Stone
Production of quarried stone decreased significantly by 61.2% to 207,535 tonnes. This ws mainly due to the completion of Government funded projects, particularly roads. Revenue was down by 30% to E12.8 million, indicating that private sector activity also decreased during the period.
Sand and Soapstone
Excavation of these minerals is strictly controlled under the Mineral and Environmental Authority Act of 1992 in order to prevent environmental damage and rigid penalties apply to anyone violating the legislation. It is estimated they generate income in excess of E7 million each year.
Other Mineral Deposits
Deposits of kaolin, talc and silica have been identified in Swaziland but despite investigations to determine the viability of mining these resources, no activity has taken place. There was little or no activity with gold, of which there are deposits in the north-west of the country. Deposits of green chert have been located in the Malolotja/Ngwenya area but these have not been exploited because of negative environmental implications.