Central SA
Northern Cape miners left destitute after months without salary payments─── KEKELETSO MOSEBETSI 11:07 Fri, 10 Jan 2025
Workers of Cape Lithium, a Canadian-listed mining company operating in the Northern Cape, are frustrated after going unpaid since November.
The financial struggles of the company, which is focused on the Norrabees Lithium Project, have left employees and suppliers in dire straits. It’s led to growing tensions among workers who accuse the overseas management of making repeated empty promises about salary payments.
Security guard Joseph Motlatsi described how the nonpayment has devastated his family, for whom he is the sole provider. “The promises to pay our salaries have been constant since November, but nothing has come through. Life has become extremely difficult for my family.”
Another worker, Johannes May, shared his ordeal. “For the past three months, we haven’t been paid. Every time we ask management, we get different stories. It’s heartbreaking. I couldn’t even give my family a proper Christmas. This is a very difficult time for us.”
In a letter dated 13 December 2024, Cape Lithium CEO James Lumley apologised for the delays, citing late transfers from the company’s Canadian headquarters. “I take my responsibility very seriously and will not let you all down. I made arrangements for the December salaries plus bonuses to be paid, which will be in South Africa prior to the 20th December for distribution,” Lumley wrote.
Yet no payments were made. A follow-up letter on 28 December detailed efforts to secure a CAD $5 million financing facility to resolve the outstanding payments, with funds expected by 6 January. This promise, too, has yet to be fulfilled.
Precision Mining SA CEO Guillaume de Klerk, whose company holds a management agreement with Cape Lithium for the Norrabees project, has told OFM News contractual obligations have not been met.
“Norrabees, under Cape Lithium, has failed to honour its agreements, including workers’ salaries. This prompted Precision Mining SA to issue a breach notice on 18 December,” said De Klerk.
He criticised the “wealthy” shareholders of Cape Lithium for failing to address the financial obligations that have caused significant hardship for employees and suppliers.
Paying security out of his pocket
The financial turmoil has reportedly not only affected the workers. “Cape Lithium’s failure to meet its obligations has caused serious harm to individuals and businesses in the Northern Cape. This needs to be addressed urgently,” added De Klerk.
He said he’s been paying security out of his pocket to ensure mining assets stay safe, in the interest of the project and service providers whose machinery and equipment remain on site.
