Consequences of pushing too hard

THE ruthless murder last week of a Richards Bay Minerals executive has perhaps been the final bullet in a string of disturbing recent events

While the global conglomerate has rejected any links between the senseless slaying and the suspension of five high-profile employees a few days earlier following sporadic violent community unrest, the red flags cannot be ignored.

In May this year the volatile nature of the ongoing community protests led to the closure of the mine with only essential and critical services in operation.

All deliveries to the site were suspended and employees were forced to take leave during this period.

The company suffered untold losses as a result, with employees uncertain about job security.

The prolonged community unrest came at a time when the Rio Tinto subsidiary was already feeling the pressure of a volatile global economic climate.

Interim results as of 3 August showed that titanium dioxide slag production in the first half was 23% lower than the same period in 2015, with one of four furnaces at RBM currently idle.

For the 4 000 people employed by RBM, which roughly translates into 30 000 people dependent on the company staying in business, these are worrying times.

When numerous engagements with community structures fail and rioting is the order of the day instead of rational dialogue and negotiation, this inevitably leads to a point of no return.

What perpetrators of horrendous crimes and incitement to violence seemingly do not understand is a possible end result which is too ghastly too contemplate.

The unspoken hypothetical question immediately comes to mind. What would happen if international shareholders decided to call it a day in Richards Bay and prematurely end the corporation’s lifespan?

The host communities, sadly, would bear the brunt.

For four decades RBM’s operations have been deeply interwoven with the well-being of its host communities with its social investment programme now totalling more than R100-million a year.

This cash injection goes directly towards education, health, agriculture, poverty alleviation and to the development of schools, houses, clinics and roads.

The training and support offered to emerging local businesses has resulted in a marked increase in procurement from host community businesses.

Last year the company signed two multi-million Rand deals with local enterprises. Its important role as a contributor to local economic development cannot be overstated.

On top of that, RBM contributes 50% of KZN’s mining sector in value output and this represents 3.3% of the national mining sector output.

The Chamber of Mines has already called for an urgent investigation into the murder, expressing concern about the ongoing conflict over job appointment processes in Richards Bay, as well as reports of further threats and intimidation against several other company executives.

Biting the hand that feeds you has far reaching consequences – something the host communities and the economy cannot afford right now.