Minister of Natural Resources and Energy Prince Lonkhokhela has accused some mining companies in Eswatini of underreporting financial performance to avoid corporate social responsibility (CSR) obligations.
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Speaking in Parliament yesterday, the minister revealed that his ministry struggles to “force” certain mining companies to honour CSR initiatives and pay mining bonds.
The remarks came in response to a question by Ngudzeni MP Charles Ndlovu, who asked why government had not mandated CSR initiatives for mining companies. Ndlovu also queried whether the ministry considered the well-being of mining communities and the potential negative impacts of mining on public health, the environment, and local infrastructure.
Prince Lonkhokhela explained that CSR is an expectation for mining companies, but some avoid compliance by claiming lack of profitability.
“It is the responsibility of companies to uphold CSR, but they hide behind limited resources. Normally, a way of compensating is prioritising locals for jobs in the mines, renting machinery, and improving infrastructure such as roads. However, they hide behind not making money,” he said.
He added that the refusal of mining companies to pay mining bonds was another challenge. These funds are intended to mitigate environmental damage after mine closures. The ministry, he said, is working with the Commonwealth to review laws and introduce stricter compliance measures.
Prince Lonkhokhela stressed that mining is a profitable sector requiring serious investment, but loopholes in current laws allow companies to under-declare earnings.
During the debate, MPs raised further concerns:
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Somntongo MP Sandile Nxumalo suggested nationalising mines, arguing that foreigners dominate the sector due to lack of support from local banks.
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Mafutseni MP Sabelo Mtetwa questioned whether legislation could compel equal ownership between locals and foreigners.
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Ntfonjeni MP Ray Dlamini raised concerns about river contamination from mining activities, warning that animals were dying from polluted water.
In response, the minister said government has not considered full nationalisation but encourages private sector participation. However, he noted that government intends to have its own mines while also highlighting that some mines are already locally owned.
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