MBOMBELA – Palabora Mining Company’s (PMC) decision to terminate the contracts of trucking and logistic companies with regards to transportation of magnetite from Phalaborwa to Maputo is a major cause for concern in a number of local communities in the Lowveld.
The economic impact of the decision will hit harder in the smaller communities and small businesses who now will have to find other ways to enhance their capital.
This is according to mr. Nicholas Malatji, CEO of Greenbush Logistics, whose transportation contract was cancelled last month leaving a number of unfinished projects which would have aided local communities.
“The smaller companies will suffer the most and they are the one’s that reach out to underprivileged communities. Many people are now without jobs and will have to make ends meet in other ways,” he said.
Another cause for concern is the underused capital and equipment that was bought months beforehand.
“We brought 15 trucks and now they are not going to be used,” he mentioned.
These trucks were going to be used to train locals to become truck drivers as part of a community upliftment project. This would also have created a number of employment opportunities.
“We were in the midst of opening a driver-training centre to help create jobs in the local communities in the Lowveld. This high-end training course would be an accessible way to encourage and uplift the underprivileged,” Malatji stated.
Another aspect that Greenbush Logistics was focusing on was an enterprise development programme. This programme implements and teaches the important elements of business to local communities.
“Communities of Phalaborwa, Bushbuckridge and Nkomazi would have benefited from a basic business skills programme such as this.
“A knowledge of sound business management is also an important life skill,” he emphasised.
The low value and price of iron and ore have also created a gap between the smaller companies and the bigger ones. Naturally the smaller locally based companies are the first to feel the heat.
“The market for minerals have been oversupplied and even if the price is low, the bigger companies can still survive,” he said.
Demand for steel has grown and the economic tension at present has created a ripple effect, especially in the smaller local communities that are directly influenced.
“The cancellation of these contracts will have tragic consequences for communities who rely on money generated from the transportation of minerals.”
According to Malatji, corporate companies must be socially responsible and empower local communities instead of always looking at other investments.
“The community is where the heart of job creation is at. Opportunities are very important, especially with regard to improving the necessary life skills,” he insisted.
