by Ncaba Ntshakala
The coal mining industry in Eswatini has seen a remarkable resurgence, leading to the growth of the ‘mining and quarrying’ subsector in 2023.
According to the Central Bank of Eswatini’s Annual Economic Review, coal production soared by an impressive 82.5%, reaching 393,328 metric tonnes, up from 215,581 metric tonnes in 2022.
RELATED: Maloma Colliery’s bumper production year yields bonuses for workers
This major increase has been said to be the highest level of coal production in nearly two decades, highlighting the sector’s significant role in the country’s economic landscape.
The surge in coal production can be attributed to the awarding of new mining licenses, enabling the exploitation of larger, high-yield crown lands, and the reopening of previously discontinued shafts especially in Maloma Colliery Limited.
The report asserts that the developments have positioned coal as the cornerstone of the mining sector’s growth, significantly contributing to the overall economic performance of the country.
In terms of financial performance, the sector’s sales revenues rose by 37.2%, climbing from E574.2 million in 2022 to E787.6 million in 2023. Coal sales alone accounted for a substantial portion of this increase, with revenues jumping by 39.7% to E707.1 million, up from E506.0 million the previous year.
This surge in revenue highlights the robust demand for anthracite coal, particularly in the steel production market.
However, despite the strong growth in sales volume, the rise in coal sales revenue was somewhat tempered by a significant drop in coal prices.
The prices fell by more than half compared to the elevated levels seen in 2022, which werelargely driven by supply shortages linked to the Russia-Ukraine conflict.
This reduction in coal prices has been said to show the volatility of the global commodities market and its impact on Eswatini’s mining revenues.
RELATED: Maloma Colliery: Building Prosperous Communities Supplement
While coal led the charge, other minerals experienced varied performance. Gold production showed a steady improvement, recording 23.09 grams in 2023, a notable increase from the 4.25 grams produced in 2022.
This growth was fueled by enhanced expertise at the gold mine and the discovery of varied gold deposits in the region.
Conversely, the production of quarried stone-faced a decline, dropping by 13.1% to 160,117 cubic meters in 2023, down from 184,226 cubic meters in the previous year.
The decline was attributed to a slowdown in road infrastructure projects, which are the primary consumers of quarried stone.
With fewer commitments to road infrastructure in the 2023/24 financial year, and the only significant project being the Nhlangano-Sicunusa road, the sector’s output and revenue were negatively impacted.
Consequently, sales revenues from quarried stone fell by 7.8%, decreasing from E65.1 million in 2022 to E60.0 million in 2023.
In summary, coal has emerged as the driving force behind the mining sector’s robust performance in Eswatini, with production and revenue figures reflecting a significant upswing.
However, the report shares that the sector’s future growth may be influenced by fluctuations in global market prices and the pace of infrastructure development within the country.
