Durban - One of the country’s biggest mining companies, Richards Bay Minerals (RBM), fears losing its international business if communities alongside the mine continue to disrupt its operations.
The Richards Bay-based company was forced to suspend its operations from Saturday because of violence and threats from the protesting communities of Sokhulu and Mbonambi tribal authorities. No work has taken place since.
RBM spokeswoman Fundi Dlamini said temporary employees would lose income because of a “no-work no-pay” policy. “Permanent staff are going to take paid leave, but they are not going to get shift and overtime allowances. Workers are very distressed,” she said.
Police spokesman Major Shooz Magudulela said four of the company’s mining machines had been set alight.
“They are demanding that the company employ only local community members. No arrests have been made at this stage and police are still monitoring the area,” said Magudulela.
Out of 4 000 company employees, 2 000 were temporary staff and 160 were employees from Sokhulu village.
Economic Development MEC Mike Mabuyakhulu was holding meetings with the company and communities yesterday and today in an attempt to resolve the matter.
Dlamini said the company was still quantifying the cost of the damage to machines and pipes used to transport minerals. The equipment was burnt down two weeks ago and tensions have not abated.
“We had to shut down as we fear the protesters’ threats to bomb our buildings,” she said.
Dlamini said the Mbonambi community had fired shots at company vehicles. They demanded that only locals should be employed.
“At one point they said all employees from Mbonambi should stay away from the premises so that they can deal with strangers. They said strangers would be hurt,” she said.
An employee who reported for duty this week complained about the loss of income.
“We don’t know when we are going to start working again,” he said.
RBM mines non-magnetic minerals such as ilmenite, titania slag, zircon, high-purity pig iron and rutile, which are used to manufacture products such as cosmetics, toothpaste, lightweight aircraft, electronic appliances, television screens, reflectors, jewellery and lipstick.
Dlamini said the company faced the threat of losing business in the US, China and Europe.
“That is the biggest risk we are facing, but we are hoping to catch up, and that they would not run away,” she said.
Dlamini said trouble started on April 25 when Sokhulu and Mbonambi community members marched to the company to present a memorandum.
Several attempts to reach a solution had failed.
She said that the company had no job opportunities at present, and instead it might have to retrench workers because of slow business.
“They wanted something tangible, like how many jobs, how many business opportunities we were going to create for them,” Dlamini said.
She said even the Department of Mineral Resources’ intervention failed to calm the situation.
“They did not like it when the department said mining was for the benefit of the people of South Africa and not only the locals.
“The mine is supposed to train young South Africans, as the minerals belong to all, not local communities,” she said.
The company had set aside R40 million for the construction of a main road in Sokhulu village.
She said in 2009 Sokhulu, Mbonambi, Mkhwanazi and Dube tribal authorities were each given more than R17 million for community development projects.
“And they have each been getting dividends of about R3 million a year,” she said.
The deputy secretary of the Sokhulu youth committee, Mbongeni Mkhwanazi, said the company had failed to fulfil 70 percent of its community development obligation.
“It has only fulfilled 30 percent, which is a dismal failure,” he said.
He said the company should be providing bursaries for local young people to study mining, and also help them to start catering businesses.
“Local community members should be the ones operating trucks that transport minerals, instead of outsourcing this,” he said.
However, local councillor Robert Msani acknowledged that the R17 million had been spent on bursaries and revamping local schools.
“There are children who have graduated from tertiary institutions because of this money,” he said.
THE MERCURY