BUSINESS MAVERICK: Billions of rand lost as Richards Bay Minerals shutdown approaches three weeks

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BUSINESS MAVERICK: Billions of rand lost as Richards Bay Minerals shutdown approaches three weeks By Justin Brown

Rio Tinto, Richards Bay Minerals’ controlling shareholder with a 74% stake, shut its operations on Wednesday 4 December for an indefinite period after two weeks of community violence related to a tribal dispute that threatened the safety of the mine’s staff and contractors. On Wednesday 18 December the closure entered its third week.

On the other hand, Zanele Zungu, a company spokesperson, said RBM had not decided to shut for the rest of 2019. Zikalala made this statement in a video posted on the KwaZulu-Natal Provincial Government Twitter page. RBM operates on tribal land belonging to the Mbuyazi clan, which has faced a leadership battle for many years. Discontent about how

RBM told its staff that it would be “monitoring the proceedings closely” regarding Zikalala’s latest meeting.In a note to RBM staff, Werner Duvenhage, RBM MD, said on 13 December: Due to the closure of RBM for more than five days, an increasing number of RBM staff would now be on unpaid leave.Muzikayise Zakwe, National Union of Mineworkers KwaZulu-Natal regional secretary, said that to resolve the impasse a community imbizo was to be held soon.

 

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Government, promise

Business conditions in SA increasingly strained. Nowadays local chiefs, community groupings etc come to claim some ransom, threatening with violence. Government must take this extremely seriously otherwise businesses will withdraw.

Damn maybe they should negotiate with the workers so they don't lose more

Perhaps Eskom has caused other aspiring investors to look elsewhere and they won’t notice this. South Africans are abjectly poor at making this country appealing.

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