Africa-Press – Eswatini. His Majesty King Mswati III, through the Minerals Management Board (MMB), has officially granted a 20-year renewable coal mining licence to Eswatini Electricity Feedstock Company (EEFC), a wholly-owned subsidiary of the Eswatini Electricity Company (EEC), to mine coal on 4 000 hectares at Lubhuku.
The move is set to generate a targeted 1 500 megawatts of electricity, supporting national energy security and economic growth.
The milestone, formalised today with the signing of the mining lease agreement, marks a major step toward reducing the country’s reliance on imported power. Minister of Natural Resources and Energy, Prince Lonkhokhela, said the project will produce more electricity than the nation currently requires, with excess power to be sold, boosting revenue and creating local employment opportunities.
“This is a very special licence because it benefits all Liswati,” said Minister Lonkhokhela. “Unlike companies owned outside the country, the profits from this project will remain here in Eswatini. Our mandate is to mine the coal and generate electricity that will benefit the whole nation.”
Under the terms of the mining licence, EEFC holds 50% ownership, while His Majesty King Mswati III and the government each hold 25% , in line with mining regulations requiring at least three shareholders. The licence is renewable and includes monitoring and enforcement by the MMB, which ensures compliance with Eswatini’s Mines and Minerals Act No. 4 of 2011.
Prince Guduza, Chairman of the MMB, said the Board will oversee the enforcement of the licence’s conditions to ensure the project adheres to national mining legislation. Patrick Myeni, Chairman of the EEC Board, expressed his gratitude to His Majesty for the approval, noting that it was a long-awaited milestone. “The King approved this even before Christmas. We are ready to begin work as soon as possible to show our commitment to his vision,” he said.
The Lubhuku coal project is expected to transform Eswatini’s energy landscape, providing clean, reliable, and locally-generated electricity. By producing 1 500 megawatts while the country currently needs only 250 megawatts, the project will not only meet domestic demand but also create opportunities for selling surplus electricity to neighbouring countries, stimulating economic growth and development.
The signing of the licence today signals a new era in Eswatini’s energy sector, reaffirming the nation’s commitment to sustainable development, energy self-sufficiency, and socio-economic advancement.
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