
Mozambique mining drama — Nsimbi Mining Services announces mystery equity partner amid layoffs and strikes
Nsimbi Mining Services, the mining company at the centre of a hostage drama at a coal mine in Mozambique two months ago, says it has a new partner, and its priority is to pay outstanding salaries.
Nsimbi Mining Services, the contractor supporting the Moatize Coal Mine in Mozambique's Tete province, has confirmed the arrival of a new equity partner, whose identity remains undisclosed.
The announcement comes amid ongoing retrenchments, unpaid salaries, and worker strikes that have deepened the company's operational crisis.
Equity deal in progress
Nsimbi Mining executive managing director Craig Dube told Daily Maverick that while Nsimbi Mining has not been sold, a new partner has come on board, and the immediate priority is to 'deal with outstanding salaries and severance packages'.
'We agreed on a deal in principle, and lawyers are currently busy with the administration and paperwork,' Dube said.
He also added that funds will only become available once the deal is finalised.
Workers' frustrations
Despite management's assurances, frustration among workers remains high. An anonymous employee described the situation as 'very bad'. confirming that a strike took place on Wednesday, 18 June, with workers demanding their long-overdue salaries.
'They have stopped operations at the mine because it is now a risk for anyone who is seen working, driving or associated with Nsimbi properties,' the worker said.
The employee added that unpaid workers have threatened to destroy anything linked to Nsimbi in their communities.
'It is getting worse than it was; people have not been paid until today… the local workers have been retrenched without being paid what is due to them,' the worker said.
Worker unrest
The retrenchments followed an incident almost two months ago on 29 April, when mine managers were held hostage at the company offices by angry workers demanding months of unpaid wages. This standoff, driven by financial difficulties and withheld passports, left staff stranded and desperate.
According to the worker, two South Africans in Mozambique were promised payment by the company on 30 May, but the payments did not materialise. Most other South Africans have returned home, leaving only three, including Dube's sister, who claims to have no information.
'There is an investor who is supposed to bring in equity, but … people who are owed money are now losing their patience,' the worker told Daily Maverick.
The human toll
The human cost of Nsimbi's collapse is starkly illustrated by Nicolus Molapo's plight. Unable to afford a dignified burial for his late mother because of months of unpaid wages, he embodies the desperation gripping workers.
Molapo shared email correspondence with the company. In the email, Nsimbi confirmed his dismissal, stating that 'the majority of the company has been sold' and that he would need to wait for the paperwork to be finalised before receiving his outstanding salary – he is owed about five months' salary. When Molapo asked about returning to work, the response was clear: 'You will NOT be required back.' The reason for this, he was told, would be communicated once his salary was settled.
A screen shot of email correspondence between worker Nicolus Molapo and Nsimbi Mining Services. (Image: Supplied)
How Nsimbi Mining got here
Founded in 2016, Nsimbi Mining set out to provide innovative equipment and tailored solutions to the mining industry across South Africa and the rest of Africa. The company's mission focused on enhancing safety, improving productivity and reducing operational costs by delivering cutting-edge technology and environmentally friendly solutions.
Nsimbi offered a comprehensive range of services for open-pit mining operations, including contract drilling, load and haul services, equipment maintenance and supply of spare parts. Its fleet was equipped with modern service vehicles, on-board welding facilities and communication systems.
The company grew by supplying equipment from well-known earthmoving brands and offering leasing options and on-site technical support. It positioned itself as a disruptor in the earthmoving industry, focusing on innovative products and customer-centric service models.
However, since early 2024, Nsimbi Mining Services has struggled with delayed payments to workers and suppliers, leading to strikes and unrest.
In April 2025, tensions peaked when striking miners held South African managers hostage at the company's Tete offices, demanding months of unpaid wages. Since then, operations have been largely paralysed, with about 200 workers on strike demanding payment of three months' wage arrears.
Uncertain future
With lawyers still finalising the deal with the new equity partner, Nsimbi Mining Services remains in a state of operational and financial uncertainty. Workers and creditors continue to await overdue payments and clarity on the company's future. DM

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Citizen
an hour ago
- The Citizen
More to be done to curb rip-offs by banks and insurance companies
In 10 months, consumers had a staggering R328 million extracted unfairly from them. If there is something South Africans love to moan about, it is the battles they have with companies in the financial services sector. Banks and insurance companies, both of which constitute 'grudge' purchases, are the main culprits. Now, the National Financial Ombud Scheme's report – just for the period between March and December last year – shows that we're not imagining the poor treatment which gets doled out to us by these institutions. In those 10 months, consumers had a staggering R328 million extracted unfairly from them. That is almost a shocking R1 million a day that saw money going to these enterprises by unfair means. It was life insurance where the ombuds scored the biggest gains for policy holders, recovering just under R203 million for them. Short-term insurance was the next biggest culprit, with R94 million being returned to policy holders for unfair decisions by insurers. By comparison, banks did reasonably well, racking up just over R29 million in money returned to their clients for various wrongdoings. The credit sector looks good with just over R2 million returned to its customers after disputes. Ombuds say the companies are improving their service and systems… but clearly a lot still needs to be done. NOW READ: Ombud gets R328 million back for disgruntled financial consumers


Daily Maverick
4 hours ago
- Daily Maverick
The Finance Ghost: The lowdown on Libstar and Standard Bank
In the murky waters of corporate announcements, Libstar's seemingly triumphant sales update is buoyed by an extra week of trading—perfect for inflating numbers, while Standard Bank's executive exodus raises eyebrows even as profits swell, proving that sometimes, the real story lies beneath the surface. Company announcements can be complicated things to navigate. Management teams don't always spoon-feed the market, especially when it comes to information that doesn't paint the company in the best light. It regularly requires a bit of digging to get to those nuggets of information, along with an understanding of the nuances of the underlying sector and the context of other recent announcements by the company. Libstar and Standard Bank are two good examples of why it's important to read as much as possible in the market and how it can be dangerous to take the numbers at face value. Libstar – it's amazing what an extra week can do On Thursday, Libstar's share price closed 16.6% higher based on the release of a sales update. The market celebrated revenue growth of 10.1%, not least of all because Libstar has been a multiyear disappointment of note (the share price has lost over half its value in the past five years). But if you read closer, you'll find that the revenue growth isn't nearly as impressive as it looks. For reasons that I really can't explain, Libstar released a sales update that suffers from poor comparability to the prior period. They chose to release numbers for the 21-week period ended 30 May 2025 and compare them to the 20-week period ended 24 May 2024. Both periods end on a Friday, so that's fair enough, but why on earth didn't they just do the 20 weeks to 23 May 2025? Perhaps this is by design, as an extra week of trading does wonders for growth in sales volumes. Those who follow the retail sector are familiar with the nuances of 53-week and 52-week periods, with much effort put into analysing numbers that are directly comparable i.e. have the same number of trading weeks. On a much shorter period like 20 weeks, suddenly having an extra week makes a 5% difference to the numbers (all else held equal). This is a very flattering view indeed. There's a further problematic nuance here: the 21st week in the latest period is a payday week. High-income households that don't live from one salary to the next may be surprised to learn that many South Africans wait until payday week to do larger shopping trips or to buy more discretionary items for their families. Even in grocery categories, payday week makes a difference. It's therefore highly likely that Libstar's volume growth of 5.2% is entirely due to the additional week of trading. In fact, it's quite possible that growth in volumes was negative, as the extra week would add 5% to volumes if we just assumed steady trading over the period – and as mentioned, the payday effect is anything but steady. This means that Libstar's comparable growth was probably more in line with (or slightly below) the price/mix change of 4.9%, which means that they are simply growing in line with inflation. I wouldn't be surprised at all if Thursday's rally washes away as reality sets in, particularly as the latest numbers don't include the impact of the foot-and-mouth disease outbreak in late May that is expected to have an effect on sales until July. Standard Bank – strong growth, but not for the best reasons The past few months have been characterised by an unusually high level of director dealings at Standard Bank, with one-way traffic in terms of executives selling shares. Not only does this include the CEO, but also a number of other high-ranking people at the company. It's always a good idea to take director dealings into account in your investment thesis, although the unusual challenge here is that the selling has come at a time when Standard Bank has been achieving solid growth. In both the first quarter and the five months to May, Standard Bank achieved around 10% growth in headline earnings (measured in rands). The group has extensive business interests in the rest of Africa, so it's relevant to mention that constant currency growth has been in the mid-teens. With return on equity in the target range of 17% to 20%, it looks as though investors have nothing to worry about. But again, with the selling by directors in the back of our minds, we need to consider what the underlying concern might be. We need to wait for the release of interim results to have all the details of course, but for now we can already see that the traditional banking business is under pressure. In an environment where rates are only coming down slowly, Standard Bank is facing uninspiring demand for credit. But any drop in rates does have an impact on net interest margin though, with the best way to understand this being that Standard Bank is facing a pricing squeeze and only modest growth in volumes (loans). This is why net interest income has been flat for the period. If this is true, then where has the growth come from to drive double-digit increases in headline earnings? There are two sources. The first is an improvement in the credit loss ratio, even though it still remains above the targeted range of 70 to 100 basis points. The second (and the more important one in this period) is excellent mid-teens growth in non-interest revenue, which includes line items like fees and trading commissions. Market volatility is a major driver of non-interest revenue and it does wonders for return on equity. Here's one more detail to keep in mind: Standard Bank has indicated that the interim period is unlikely to enjoy headline earnings growth at the same levels as we saw in the five months to May 2025, as June 2024 was a particularly strong month and hence there's a demanding base. Standard Bank's share price is only up 2% year-to-date. When the company insiders are finding better uses for their money, then investors should think carefully about doing the same. DM


Daily Maverick
4 hours ago
- Daily Maverick
Mozambique mining drama — Nsimbi Mining Services announces mystery equity partner amid layoffs and strikes
Nsimbi Mining Services, the mining company at the centre of a hostage drama at a coal mine in Mozambique two months ago, says it has a new partner, and its priority is to pay outstanding salaries. Nsimbi Mining Services, the contractor supporting the Moatize Coal Mine in Mozambique's Tete province, has confirmed the arrival of a new equity partner, whose identity remains undisclosed. The announcement comes amid ongoing retrenchments, unpaid salaries, and worker strikes that have deepened the company's operational crisis. Equity deal in progress Nsimbi Mining executive managing director Craig Dube told Daily Maverick that while Nsimbi Mining has not been sold, a new partner has come on board, and the immediate priority is to 'deal with outstanding salaries and severance packages'. 'We agreed on a deal in principle, and lawyers are currently busy with the administration and paperwork,' Dube said. He also added that funds will only become available once the deal is finalised. Workers' frustrations Despite management's assurances, frustration among workers remains high. An anonymous employee described the situation as 'very bad'. confirming that a strike took place on Wednesday, 18 June, with workers demanding their long-overdue salaries. 'They have stopped operations at the mine because it is now a risk for anyone who is seen working, driving or associated with Nsimbi properties,' the worker said. The employee added that unpaid workers have threatened to destroy anything linked to Nsimbi in their communities. 'It is getting worse than it was; people have not been paid until today… the local workers have been retrenched without being paid what is due to them,' the worker said. Worker unrest The retrenchments followed an incident almost two months ago on 29 April, when mine managers were held hostage at the company offices by angry workers demanding months of unpaid wages. This standoff, driven by financial difficulties and withheld passports, left staff stranded and desperate. According to the worker, two South Africans in Mozambique were promised payment by the company on 30 May, but the payments did not materialise. Most other South Africans have returned home, leaving only three, including Dube's sister, who claims to have no information. 'There is an investor who is supposed to bring in equity, but … people who are owed money are now losing their patience,' the worker told Daily Maverick. The human toll The human cost of Nsimbi's collapse is starkly illustrated by Nicolus Molapo's plight. Unable to afford a dignified burial for his late mother because of months of unpaid wages, he embodies the desperation gripping workers. Molapo shared email correspondence with the company. In the email, Nsimbi confirmed his dismissal, stating that 'the majority of the company has been sold' and that he would need to wait for the paperwork to be finalised before receiving his outstanding salary – he is owed about five months' salary. When Molapo asked about returning to work, the response was clear: 'You will NOT be required back.' The reason for this, he was told, would be communicated once his salary was settled. A screen shot of email correspondence between worker Nicolus Molapo and Nsimbi Mining Services. (Image: Supplied) How Nsimbi Mining got here Founded in 2016, Nsimbi Mining set out to provide innovative equipment and tailored solutions to the mining industry across South Africa and the rest of Africa. The company's mission focused on enhancing safety, improving productivity and reducing operational costs by delivering cutting-edge technology and environmentally friendly solutions. Nsimbi offered a comprehensive range of services for open-pit mining operations, including contract drilling, load and haul services, equipment maintenance and supply of spare parts. Its fleet was equipped with modern service vehicles, on-board welding facilities and communication systems. The company grew by supplying equipment from well-known earthmoving brands and offering leasing options and on-site technical support. It positioned itself as a disruptor in the earthmoving industry, focusing on innovative products and customer-centric service models. However, since early 2024, Nsimbi Mining Services has struggled with delayed payments to workers and suppliers, leading to strikes and unrest. In April 2025, tensions peaked when striking miners held South African managers hostage at the company's Tete offices, demanding months of unpaid wages. Since then, operations have been largely paralysed, with about 200 workers on strike demanding payment of three months' wage arrears. Uncertain future With lawyers still finalising the deal with the new equity partner, Nsimbi Mining Services remains in a state of operational and financial uncertainty. Workers and creditors continue to await overdue payments and clarity on the company's future. DM