Kangra Coal reports it made history 2 May 2019 when it hosted a celebration to announce plans to allocate free-carry (unencumbered) shares to workers and local communities for the first time since the mine was established in 1957.
Workers were given a day off to be part of the celebration with the mine managers and local community members. This was an initiative of Menar, the investment company that purchased Kangra through its subsidiary, Canyon Coal, in September 2018.
Menar MD Vuslat Bayoglu (on the left) at the ‘New Beginning’ celebration.
Kangra is the first mine to allocate shares to workers and communities since Mineral Resources Minister Gwede Mantashe issued Mining Charter III. The Charter requires mining companies to allocate shares to workers and communities.
Billed as the ‘Kangra New Beginning’, the event was held near the mine, which is located in the Mkhondo municipality. The municipal leaders, traditional authority leaders and other community leaders joined the celebration.
Workers and community members ululated when Menar Managing Director Vuslat Bayoglu presented symbolic certificates to signify the 5 % allocation to each. The shares will be held under separate trusts. “In the next few months, the legal process to give effect to the allocation will be concluded, but we thought we should make our intentions firmly clear right from the start so that you can assess us against our undertaking,” he said.
Speakers at ceremony lauded the initiative, saying it laid the foundation for the redefinition of the relationship between workers, community and the new mine owners.
Chairman of Menar Mpumelelo Mkhabela said the share allocation to employees and community was different to the usual employee share-ownership schemes where shares are granted for a limited period.
“This is a permanent arrangement. For as long as you work at Kangra, you will own shares. If the company makes profits and dividends are declared, you will also benefit from dividends that will accrue to the employee trust,” Mkhabela explained.
Canyon Director Dr Sakhile Ngcobo provided a broad overview of Kangra’s operations, explaining that the company is involved in the mining and processing of thermal coal, through the operation of an underground mine, along with several opencast pits, located in the Mpumalanga coalfields.
Kangra currently produces about 2-million tons a year of saleable coal with the majority of its high volatile coal sold on the export market, and the rest sold to independent users.