Mining & industry

Timing in the hands of the DMR

25 January 2018 · Platinum Bushvelder

Timing in the hands of the DMR

Thabazimbi – In January, a team from ArcelorMittal South Africa and Kumba Iron Ore (Kumba) visited Thabazimbi mine and local communities to engage with the mine’s key stakeholders.

The purpose of the two-day visit, from 15 to 16 January 2018, was to update stakeholders about progress on the agreement that was signed late in 2016 between Kumba and ArcelorMittal South Africa to transfer Thabazimbi mine into ArcelorMittal South Africa’s portfolio.

The delegation was led by ArcelorMittal’s CEO, Wim de Klerk and general manager: procurement and logistics, Willem Nel as well as Glen Mc Gavigan, Kumba’s executive head for technical and projects. They met with mine employees, Thabazimbi Local Municipality delegates, the local business community, government departments, non-profit and community-based organisations as well as the local community.

The main objective of the engagements was to:

  • Introduce ArcelorMittal South Africa as the potential new owners of Thabazimbi mine once Section 11 has been approved;
  • Reassure all stakeholders that ArcelorMittal South Africa will act in the best interests of all the stakeholders involved;
  • Listen to concerns from employees and the local community; and
  • Share ArcelorMittal South Africa’s plans for Thabazimbi mine.

The engagements provided an opportunity for stakeholders to ask questions and provide feedback to ArcelorMittal on their concerns which include:

  • The impact of the transfer on employees, contractors and suppliers;
  • The local economic landscape and future job opportunities; and
  • The continued support of existing community projects and potential investment in the future.

“We were encouraged by the open and honest feedback we received from stakeholders,” says Willem Nel, ArcelorMittal South Africa general manager. “We have taken note of these concerns and we will consolidate this feedback into an action list which will be incorporated into our stakeholder engagement plan.”

Glen Mc Gavigan, Kumba’s executive reiterated: “Kumba Iron Ore and Arcelor Mittal are committed to ensure the transition process is managed in the best interest of the employees and the Thabazimbi community in consultation with all stakeholders”.

ArcelorMittal South Africa submitted a Section 11 application to the Department of Mineral Resources (DMR) in December 2016. The agreement cannot be implemented without the approval of the Section 11. Once the application is approved, Thabazimbi mine’s mining right will be transferred to ArcelorMittal South Africa, who will take full responsibility for the environmental rehabilitation and decommissioning of Thabazimbi mine.

ArcelorMittal South Africa has reassured the current employees at Thabazimbi mine that the transfer will not have any impact on their terms and conditions of employment. Further to this, ArcelorMittal South Africa will also undertake a full feasibility study to determine what options are open to the steelmaker, with a focus on remining the existing iron ore stockpiles.

ArcelorMittal South Africa and Kumba management have committed to quarterly engagements with stakeholders to provide continuous updates on progress. The first follow-up engagement session is scheduled for April 2018. A summary of outcomes from last week’s engagements will be shared with all stakeholders by end of January 2018.

Kumba Iron Ore press release: 22 January 2018