JSPL's $2 bn South African mine faces relocation opposition

10 Aug 2023 CW Team

Jindal Steel & Power’s ambitious plan to establish a $2 billion iron-ore mine in South Africa is encountering resistance from local communities concerned about the potential displacement of homes and graves, Bloomberg reports.

The proposed mine in Melmoth, situated in South Africa's KwaZulu-Natal province, is met with apprehension as it would necessitate the relocation of thousands of homes and graves. The mine, slated to begin production in 2027 and potentially yield 32 million tonnes of magnetite ore annually by 2031, could significantly overshadow recent investments in the country's mining sector.

While Jindal contends that a minority of residents oppose the project, the Entembeni Crisis Forum, responsible for organizing the petition, argues that the mine's scope could lead to the displacement of more than 3,000 households and 3,000 graves.

Jindal maintains its commitment to consulting affected households and adhering to legal requirements when making resettlement decisions, including exhuming graves if necessary. The company further expresses its intention to secure a mining license next year, with the construction of a processing plant projected to take two-and-a-half years. The operation, once established, is expected to be South Africa's second-largest of its kind, trailing Kumba Iron Ore Ltd.’s Sishen.

Despite the potential for export to Jindal's steel mills in Oman or India, concerns over environmental impact and loss of agricultural land continue to be raised by the forum.

Jindal Steel & Power is led by Savitri Jindal, Asia's wealthiest woman. The proposed South African mine expansion reflects the company's broader mining operations, including anthracite mining in South Africa and metallurgical coal mining in Mozambique.

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