South African billionaire Patrice Motsepe's nickel mine accused of shutting out locals

Communities around a nickel mine owned by South African billionaire Patrice Motsepe's African Rainbow Minerals Ltd. have accused the operation of shutting local people out of jobs and contracts, and have taken their complaints to the mine in a protest.

Residents of Badplaas, Tjakastad, Elukwatini, Nhlazatshe, Aramburg and nearby areas in Mpumalanga province say the Nkomati Nickel Mine has recruited workers from outside the province while qualified people in the surrounding villages remain unemployed. They also say local businesses have been passed over for supply and service contracts.

Thabo Nkambule, a leader of a community forum that represents the area, said the exclusion has gone on for years. When the forum looks into complaints about new hires and service providers, the allegations often turn out to be true, he said. The forum holds the CVs of qualified residents who have been out of work for long periods, and Nkambule said mine management has been reluctant to meet with it.

Residents are not asking for special treatment, he said. They want the mine to keep its legal and transformation commitments.

A memorandum to the mine

After what they described as failed attempts to engage management, residents recently marched to the mine and handed over a memorandum addressed to Nkomati, its shareholders and ARM. It calls on them to deal with "the systematic exclusion" of host communities from economic opportunities at the operation.

The memorandum accuses the mine of failing to meet commitments under its Social and Labour Plan and its obligations under the Mining Charter on employment, skills development, local procurement and community development. It sets out targets the communities want met: 80% of jobs going to people from host communities, 70% of services bought locally, and all unskilled and semiskilled positions reserved for host-community residents.

One resident, who asked not to be named, accused mining companies of dealing with a handful of chosen individuals instead of consulting communities broadly, and said some self-appointed community representatives act as gatekeepers.

Mine on care and maintenance

Mine spokeswoman Betty Maluka said Nkomati has been under care and maintenance since March 2021, when mining was suspended and the workforce was cut sharply. A core team of 48 employees has been kept on to keep the site safe and meet regulatory requirements.

Nkomati, in the Badplaas area of Mpumalanga, was for years run as a 50-50 venture between ARM and Russia's Norilsk Nickel before ARM took full ownership in 2021. The open-pit mine produced nickel, copper, cobalt and other metals before it stopped operating.

ARM, which is listed on the Johannesburg Stock Exchange, mines platinum group metals, iron ore, manganese, chrome and coal.

Motsepe's mining empire

Motsepe, a former lawyer, built ARM after buying low-producing gold shafts in the 1990s and turning them around. He remains executive chairman of the company, which is the main source of his fortune.

He is president of the Confederation of African Football and owns Mamelodi Sundowns, one of Africa's most successful football clubs. He also founded African Rainbow Capital, an investment group with interests in financial services and telecommunications. In 2013 he became the first African to sign the Giving Pledge. Forbes lists him among Africa's billionaires.