Will the Balgray mining project save Dundee?
The company currently employs 606 people
A proposed mining project at the old Balgray Colliery on Mpati Mountain may offer some salvation to the local economy, which has suffered hugely due to the Covid-19 pandemic.
Dundee Tourism estimates that the loss of income from the closure of the tourism industry due to lockdown restrictions has cost the local economy around R70 million in terms of lost ‘bed nights’ and spin-offs for restaurants, petrol stations and other associated industries.
However, the proposed re-commissioning of the Balgray mine could save Buffalo Coal from certain closure, should the Department of Mineral & Energy Affairs (DMRE) give the go-ahead following the conclusion of the public participation process.
The company currently employs 606 people (including contractors) and General Manager Kevern Mattison said that in terms of salaries earned, contractors and service providers, Buffalo Coal ensures a major monthly cash injection into the local economy. Mr Mattison said Buffalo’s Aviemore Colliery’s lifespan will terminate in 2022, which – without the Balgray project – would spell the end of the line for the company.
“For Buffalo Coal, the Balgray project has now become a project of job preservation rather than job creation. Obviously, the Covid-19 crisis has added further pressure on mining, compounded by the fall in coal prices that started some years ago when the price dropped from $120 a ton to $43, which was one of the reasons leading to the closure of Magdalena Colliery and the loss of around 500 jobs.”
See this week’s issue of the Northern Natal Courier for full story.
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