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Daily Maverick
18 hours ago
- Business
- 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
Daily Maverick
11-05-2025
- Business
- Daily Maverick
SA workers at troubled Mozambique mine are paid just a fraction of monthly salary
The events at Nsimbi Mining Services reflect a broader pattern of unpaid wages and growing worker and community protests in Mozambique. A week after Nsimbi Mining Services managers were held hostage by striking miners in Mozambique's Tete province, Mozambican miners reported receiving a full month's salary on the promised date, while South African staff said they were paid late and received only about a quarter of their monthly salary. In addition, one supplier is still waiting for payment. 'Nothing yet and there's no promised date,' said the supplier. Two South African employees at Nsimbi Mining Services, who wished to remain anonymous, confirmed the partial payments. One of the employees said, 'I received 60,000 meticais (about R17,000) late on Friday, 2 May from Nsimbi Mining Services, which does not even equal a quarter of my salary. I continue waiting for the rest of my money.' The miner said they had asked Craig Dube, Nsimbi's managing director, for an update on payments, and his response was, 'As I understand our communication is now through the media, let me respond through the same channel.' Daily Maverick attempted to contact Dube multiple times over the past week without receiving a response. A WhatsApp message on 3 May was blue-ticked with no response, and another WhatsApp message on 8 May appears to be unread. Daily Maverick also tried calling Dube with no success. Japie du Toit, a manager at Nsimbi Mining Services, said Dube would travel to Tete this week. Broader socioeconomic challenges Marisa Lourenco, a political analyst in Johannesburg, told Daily Maverick that the events at Nsimbi reflect a broader pattern of unpaid wages and growing worker and community protests in Mozambique. She highlighted recent protests against the Irish mining company Kenmare Resources and the French hydrocarbons firm TotalEnergies over unfulfilled promises and rights violations. In December, Agência de Informação de Moçambique reported that a large crowd had invaded Kenmare's main camp, demanding that the mining operations provide benefits for the local community. This occurred after the company failed to honour a longstanding promise to build a bridge linking Topuito (site of Kenmare's mine) to the Larde district capital. Lourenco noted that poor community relations and weak government oversight, exacerbated by corruption, had emboldened workers and communities to hold companies accountable and to often disrupt operations. 'The business environment in Mozambique is becoming more challenging as companies face communities and workers expressing grievances,' said Lourenco, emphasising that socioeconomic hardships had deepened, with poverty rates rising from 46% in 2015 to 65% today. Background Nsimbi Mining Services, which provides support services to the Moatize Coal Mine operated by Vulcan International, has struggled with delayed payments to workers since early 2024. Months of unpaid wages sparked a strike by employees last month, culminating in a tense hostage situation in which two South African managers and a Mozambican HR manager were confined in the company's Tete offices. The standoff ended after police intervention and promises of partial wage payments. The financial strain on Nsimbi is symptomatic of wider challenges facing Mozambique's coal sector. Global coal prices have slumped sharply in 2025 amid oversupply and shifting energy markets, while local disruptions, including post-election violence and logistical bottlenecks, have compounded operational difficulties. These pressures have forced major players like Vulcan International to cut jobs and restructure, intensifying economic uncertainty in mining communities heavily reliant on the industry. DM
