The Eswatini Electricity Company (EEC), through its subsidiary Eswatini Electricity Feedstock Company (EEFC), has been granted a 20-year renewable coal mining license.
The Minerals Management Board (MMB) approved the license as a major step toward energy self-sufficiency.
The licence allows EEFC to mine coal on 4,000 hectares at Lubhuku to support the development of a proposed 1,500MW power plant, six times higher than the country’s current energy demand.
The licence was formally handed over yesterday during a signing ceremony at the Hilton Garden Hotel in Mbabane, attended by senior government officials, royalty, and EEC leadership. Key attendees included the Minister of Natural Resources and Energy, Prince Lonkhokhela; MMB Chairperson, Prince Guduza; EEC Board Chairperson Patrick Myeni; and EEC Managing Director, Ernest Mkhonta.
In his remarks, Prince Lonkhokhela thanked His Majesty for granting the license and praised the MMB for its dedication. He mentioned that giving the license to a company fully owned by the Government of Eswatini guarantees that the project’s benefits go directly to emaSwati.
“This is a significant national milestone,” he said. “With this licence in place, we are taking bold steps toward guaranteeing a reliable energy supply and strengthening our economic competitiveness.”
The structure of the mining license distributes ownership among three parties as outlined in the Mines and Minerals Act No. 4 of 2011. EEFC owns 50% of the project, while His Majesty King Mswati III and the Government of Eswatini each hold 25%. The MMB will oversee the project to ensure full compliance with regulatory requirements throughout the license period.
MMB Chairperson, Prince Guduza, affirmed the Board’s commitment to enforcing the licence conditions, assuring the nation that they will ensure that all legal and environmental standards are met as the project progresses.
EEC Board Chairperson, Patrick Myeni, expressed gratitude to His Majesty for approving the license, calling it a long-awaited achievement. He added that the license comes at a crucial time as the company speeds up efforts to expand local power generation and decrease reliance on electricity imports.
Once operational, the Lubhuku coal project is expected to transform Eswatini’s energy landscape significantly. Its planned generation capacity of 1,500MW greatly surpasses the country’s current demand of about 250MW, creating opportunities to export surplus electricity to neighboring countries. The project is also expected to boost economic growth, enhance energy security, and generate long-term national value.