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Mining company leaves small business in dire straits

by Moipone Malefane
October 3, 2024
in Business
Reading Time: 2 mins read
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By: Noko Mashilo

Nkanyiso Mthombeni, the director and owner of Open Rand Group, is a deeply frustrated businessman. What was once a daily routine of driving his coal trucks through the hills of Dannhauser in KwaZulu-Natal has come to a halt. His company’s contract has been terminated, his invoices remain unpaid and his 10 employees are now without jobs.

Mthombeni told Vutivi News that he had secured a 12-month contract with Ikwezi Mining, operated by Oza Holdings in Midrand, Johannesburg. “The contract was meant to be renewable, but after a year, we were cut off, with the condition that we must own our own trucks instead of outsourcing. Given how incubators and empowerment should work, we feel we were set up to fail,” Mthombeni told Vutivi News.

He further explained that the termination was unfair, particularly as it was done without proper consultation. “The worst part is that we were offered lower rates compared to our white and Indian counterparts, who are still outsourcing their trucks. This feels like an intentional exclusion of emerging black-owned small businesses,” said Mthombeni, who also serves as a social activist and leader of the New Environmental Justice Solutions.

Mthombeni also mentioned that his last invoice, which amounted to R103,000 for water tanker services provided in August of last year, was only partially paid at 30%. He has been struggling to recover the remaining balance. “I’ve sent countless emails to the mine’s director and CEO with no response. I even travelled from KwaZulu-Natal to their head office in Gauteng to resolve the issue but without success. The last communication I had with Ikwezi Mine was last Tuesday, and I was told I won’t be paid the remaining amount,” he shared.

Mthombeni believes that his business has been deliberately sidelined. “This jeopardises not only my small business but the livelihoods of my team. It seems they’ve forgotten that, according to the incubation and social labour plans, the mine is supposed to offer opportunities to local emerging businesses, helping them grow and develop,” he concluded. Vutivi News attempted to contact the mine on numerous occasions with no luck. At the time of publishing, they had not responded to our question.

Tags: Ikwezi MiningNkanyiso MthombeniOpen Rand GroupOza Holdings
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