Karonga chiefs threaten to shut down Eland Coal Mine over corporate social responsibilities

Traditional leaders in Karonga have threatened to shut down Eland Coal Mine within “two or three weeks” if the company continues ignoring its corporate social responsibilities detailed in an agreement signed last year.

Since August 2013, Eland has been under fire for allegedly ignoring the memorandum of understanding which binds it to establish a health centre, expand school and provide safe water as well as electricity to locals affected by mining activity in Mwaulambo.

During a visit to the mine, three chiefs, led by group village headman Mesiya, expressed disappointment with the company for hurrying to excavate pits in the area, delaying to compensate households in the way of coal extraction and failure to honour nearly all obligations spelled out in the deal.

In an interview, Maseya rapped: “The mining company came to the area without consulting us as custodians of the land. Still, we hoped they would invest some of their earnings in developing the area just as mining activity has uplifted several towns in Zambia, South Africa and other neighbouring countries.

“However, all we are getting is coal dust, smoke, noise of heavy machines, spills of coal waste that are scorching our rice fields and other side effects. Soon, in two or three weeks time, you will hear from us. We will shut down the mine if they continue neglecting our interests.”

Threats to close the mine have been looming since August 2013 when some of Maseya residents were supposed to be resettled and almost died following the payment of the belated compensation to nine of those earmarked to be relocated from the mining zone.

The traditional leaders described the compensation plans as “an ill advised compromise” on the resettlement plan since the MOU which partly requires Eland to “build standard houses for the affected depending on size of the family” and pay “fair compensation on property existing on the land”.

Reading through the agreement, there are no deadlines attached to the obligations the company is expected to carry out in consultation with Karonga District Council—an omission the affected village heads bemoaned as a big setback that needs to be ironed out urgently if affected communities are going to get a fair deal from mining activity.

When asked for his part of the story, Eland head of sales and marketing Mayamiko Mwinjilo, who speaks for the company, asked for a questionnaire which has not yet been answered.

Mwawi Shawa, desk officer for Justice and Peace Department in Karonga Diocese which is implementing Transparency Initiative within Our Natural Extractives (Tiwone), said it was in the interest of justice for Eland to honour the agreement.
“As the Catholic Commission for Peace and Justice, we have a preferential option that requires us to side with the vulnerable. Likewise, we hope Eland will respect the agreement for justice and peace’s sake,” said Shaba in an interview.