Jindal Steel & Power Ltd. is encountering resistance from local communities in South Africa over its proposed up-to $2 billion iron-ore mine development in Melmoth, located in the KwaZulu-Natal province. The project is facing opposition due to concerns that it would necessitate the relocation of thousands of homes and graves.

The planned mine in Melmoth aims to become a significant player in South Africa's mining sector, potentially producing 32 million tons of magnetite ore annually by 2031, with operations beginning in 2027. However, community members from Makhasaneni have expressed strong opposition to Jindal Mine's plans, asserting that the mining activities would disrupt their longstanding way of life.

The challenges faced by Jindal in gaining approval for the mine underline the complexities associated with investing in the South African mining industry. Decades of past violations of environmental and social rights have led to a lack of trust in such endeavors. Additionally, the nation's deep-rooted inequality often creates divisions among communities when projects promise job opportunities and economic benefits for some while potentially adversely affecting others.

The Entembeni Crisis Forum, which organized the petition against the mine, highlights concerns that the proposed mining area would require the relocation of over 3,000 households and 3,000 graves. Jindal, however, states that about 350 homes could be impacted during the initial mining stage, subject to final assessment. The company emphasizes that any resettlement decisions and grave exhumations will be conducted in accordance with legal requirements and through consultation with affected parties.

The community's concerns also encompass potential environmental harm and loss of agricultural land. The proposed mine, situated around 70 km from the port of Richards Bay, holds ore with a grade of approximately 26%. The extracted ore could be used for Jindal's steel mills in Oman or India or sold in the market. The company anticipates obtaining a mining license next year, and construction of a processing plant is projected to take about two-and-a-half years. Once operational, the mine would become South Africa's second-largest iron ore operation after Kumba Iron Ore Ltd.'s Sishen mine.

Jindal Steel & Power Ltd. is involved in mining anthracite in South Africa and metallurgical coal in Mozambique. The company also recently signed a contract to develop a coal mine and construct power plants to supply Botswana with 600 MW of electricity, starting with a 300 MW plant.