Durban - Richards Bay Minerals (RBM) and its parent company Rio Tinto leadership say in spite of their executives travelling under armed guard in armour-plated vehicles, they remain committed to operating in Richards Bay because of the expectation from their clients.
Eleven people linked to the company, including Nico Swart, the general manager of operations, have been killed and tensions in the area have seen the company’s executives forced to enlist the services of security companies amid growing concerns over their safety and criminal activity in the mining area.
The tensions have heightened fears that the multimillion-rand operation, which generates thousands of direct jobs and pumps millions into the local economy, could close and affect the region’s economy.
However, Rio Tinto’s top brass allayed such fears, stressing its commitment to the region. Rio Tinto managing director Werner Duvenhage conceded that RBM had been subjected to criminal activity affecting its business, including the theft of product, pointing out that this had prompted RBM to significantly strengthen its internal controls with the aim of stopping further potential for illegal activity occurring in the business.
“RBM has commenced initial civil legal proceedings against certain parties we believe have benefited from the theft of product from RBM and in the Richards Bay area,” said Duvenhage.
He noted that RBM was not the only company facing operational and security challenges and expressed the company’s gratitude to the provincial government and the SAPS for their continued support, both to its business operations and people in KwaZulu-Natal.
Duvenhage said that the safety and security of RBM’s people remained the top priority and this was the reason the company welcomed the deployment of the national task team, and expressed the company’s commitment to working closely with key role-players in government, the SAPS and community groups to improve the security in the region.
“RBM takes its response to this criminal activity seriously as it is committed to the safe operation of RBM, its host communities and the region,” he stressed.
RBM is a joint venture between Rio Tinto and Blue Horizon – a consortium of investors and the mine’s four host communities of KwaMbonambi,
KwaSokhulu, KwaMkhwanazi and KwaDube and offers employment to about 5 000 people with a total economic impact of R7 billion in 2021 alone. ANC KZN chairperson and MEC for Economic Development and Tourism, MEC Siboniso Duma said they were aware of the challenges at Rio Tinto and were monitoring the situation.
Minister of Mineral Resources and Energy Gwede Mantashe, after Swart’s murder, said the criminality was negatively affecting mining operations in Richards Bay.
He said RBM was a very important company, not only for KZN, but in the context of mining nationally.