BACK IN BUSINESS
…but time will be the true test
PRODUCTIVE negotiations saw the deal struck that gratefully led to the gates at Richards Bay Minerals (RBM) being reopened on Wednesday.
‘The mining process is being restarted and this is expected to take about two weeks, while the smelting operation will take a little longer and we will remain on reduced power for some time,’ said RBM Managing Director Werner Duvenhage.
He also confirmed that the number 4 furnace, which was shut down a month ago, is now ‘lost’ to the mine and will not be resurrected.
Agreements concluded with the four host stakeholder communities – not without some intense debate and heated discussion – led to the
The murder of Nico Swart remains unsolved, and until the police discover who was behind it and why, the matter has not been satisfactorily resolved
breakthrough after force majeure was declared in June following a series of serious arson and violence incidents. This included the cold-blooded killing of GM Operational Services Nico Swart on Dune
Road in Meerensee on 24 May. Although an ‘in principle’ agreement had been reached in early July at a stakeholder meeting chaired by
KZN Premier Sihle Zikalala, failure to settle concerns about the management of RBM’s community funding, as well as persistent security apprehension delayed the recommencement. After accord was reached last month with the Sokhulu Youth
Forum, assuring safety of staff and contractors, the RBM hierarchy sat down with traditional leadership on Monday afternoon where a modernised trust fund mechanism was signed.
The agreement will ensure improved governance, control and transparency of the company’s trust funds, and was endorsed by the release of a further
R130-million into the funds.
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But while the security alert level might ease somewhat after negotiations with community groups, there will nevertheless still be significant measures taken to ensure staff, contractor and asset
‘After all, the murder of Nico Swart still remains unsolved and until the police discover who was behind it and why, the matter has not been satisfactorily resolved,’ Duvenhage told the ZO.
Obviously alert to the lengthy unresolved succession issues within the local community, Duvenhage said one of the points of the trust modernisation was to make it less dependent on the political scenario or on specific individuals.
He said the mine shut has had enormous financial repercussions.
RBM itself has lost more than R2-billion – a quarter of its annual revenue – as a result of the protracted shut.
But the mine’s loss has also mugged other financial beneficiaries, not least of which are the national treasury and Eskom, both wholesale losers of taxes and earnings.
‘With our profits down and our power consumption lower, they will feel it significantly.
‘And of course our employees, contractors, suppliers and others who profit from our operation have also been hard hit.’ However, he was upbeat about future prospects for the mine and its key stakeholders.
*Open your PixzAR app and scan the framed image to see RBM MD Werner Duvenhage’s summary of the positive outcome following an exclusive interview with the ZO