New deal: Embattled Richards Bay Minerals resumes operations after community talks

Almost two months after global mining group Rio Tinto declared force majeure on Richards Bay Minerals’ (RBM’s) customer contracts, and suspended mining and smelting at the heavy mineral sands operation, it has announced that it is restarting its operations.

This is after the mining giant reached agreements with a wide number of community stakeholders – including four local communities and the Sokhulu Youth Forum – that enabled it to reopen the mine.

The pressure was building on all stakeholders to reach agreements. RBM employs more than 5,000 people and contributed R8-billion directly to the SA economy in 2020. It makes the biggest private sector contribution – directly and indirectly – to the KwaZulu-Natal economy. So when it shut one of its four furnaces in July due to the depletion of available feedstock at the plant, further shock waves reverberated through the local business community.

Just last weekend, the National Union of Mineworkers (NUM) threatened to embark on industrial action if operations were not restarted, according to local media. The union said the implications of the force majeure were a direct attack on workers in general, who could not be “crucified and treated as sacrificial lambs” due to an impasse between Rio Tinto and its stakeholders. 

“Our members have been sitting at home for too long due to failure by the employer to address issues with its stakeholders,” NUM KwaZulu-Natal regional secretary Muzikayise Zakwe said earlier this month.

One outcome of the discussions is that RBM has released over R130-million to the community trusts established for each of the communities surrounding the mining and smelter operation.

In 2009, as part of its BEE transaction, RBM established community trusts for its four host communities to receive dividend payments for the purpose of supporting broad-based community upliftment.

The past two months have seen intense engagement between RBM and the surrounding stakeholders. These have been supported by the Amakhosi, provincial and national governments and others. Regarding the trusts, the communities have reached an agreement to support enhanced governance and controls of the trusts, together with greater transparency. They will also work on modernising the trusts to ensure they deliver on their intended purpose. 

“This is a major milestone,” says RBM MD Werner Duvenhage. “The contribution RBM makes to the communities through these funds will be put to achieving its intended purpose, which is to directly support local economic development in the communities.”

A solution has also apparently been found to resolve the violence and bring peace and stability to the mine. This was after RBM and the Sokhulu community reached an agreement on the way forward two weeks ago. 

Troubles between the mine and various local communities go well beyond the trusts and include local youth forums that have been agitating for jobs and bursaries for a number of years. Two years ago, Rio halted a planned $460-million expansion project because of violence and protests. 

Matters came to a head in May this year with the murder of RBM general manager, Nico Swart, following which Rio declared force majeure. It was too dangerous for its staff to come to work, it said – ironically the risk lay outside the gates.

Engagements between RBM, inkosi Buzayiphi Mthiyane, the Sokhulu Traditional Council, the Sokhulu Youth Forum, the Sokhulu Environmental and Disaster Committee and provincial leadership were held over a number of weeks to find solutions, according to the Sunday Tribune.

RBM has agreed to employ at least 10 community members to fill the 20 available permanent plant operator positions, provided that they meet the minimum requirements of a matric certificate or an N3 in maths and science.

In addition, RBM’s community recruitment office will prioritise service providers and contractors from the host communities. 

At this point, the company has not indicated how peace will be maintained, or whether it will resuscitate its $460-million expansion project. DM/BM

This article will be updated with further comments from RBM MD Werner Duvenhage and the NUM.