Court dismisses mining companies' application to reform community trust deeds

Mining, an important sector in KZN

Mining, an important sector in KZN

Image by: Tiro Ramatlhatse

Published 16h ago

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A court application by mining companies on the KwaZulu-Natal north coast to have local community trust deeds reformed has been dismissed.

The Pietermaritzburg High Court recently dismissed with costs an application by Richards Bay Mining (Pty) Ltd and Richards Bay Titanium (Pty) Ltd to vary the trust deeds which are under amakhosi (traditional leaders) of the Mkhwanazi, Dube, Mbonambi, and Sokhulu communities, under section 13 of the Trust Property Control Act, 1998.

RBM filed the application against Amakhosi and the communities, after it tried unsuccessfully to effect changes to the community trusts that were established as part of the RBM empowerment transaction concluded in 2009, in which RBM sold 24% shareholding to an empowerment consortium that included the communities.

RBM had asked the court to amend the beneficiary provisions by removing amakhosi and their families as trustees and beneficiaries; to modernise the trust provisions to improve controls and accountability and to introduce provisions relating to social investment policies of the trusts.

RBM is a subsidiary of Rio Tinto and extractors and refiners of mineral sands.

The Dube, Mbonambi and Mkhwanazi communities represented by Amakhosi Esizwe, have welcomed the ruling.

"The court application was seeking to control the very instruments, the community trusts, that were created for our empowerment, as demonstrated by a litany of variations they sought to impose on these trusts through the courts. In the process a host of lies were peddled about Amakhosi abusing these trusts without a shred of evidence having been presented to the court.

"Since the inception of this transaction, RBM has viewed the shares handed to our communities as a favour forgetting that without the communities' support the South African government through their Department of Minerals would not have granted the conversion of RBM's old order mining rights to new mining rights and they will not be mining our land," according to a statement.

They added that their communities had sacrificed their livelihoods for RBM to continue to mine their land.

"Despite what many view as a necessary economic activity that brings billions for the South African fiscus, our experience is much further from these billions.

"The history of this empowerment transaction has been and continues to be a painful one, as RBM supported by its multi-national parent, Rio Tinto, has abused its power by mining our ancestral graves, contaminated our waterways, withheld payments to our communities and breached the very agreements that gave birth to this empowerment transaction. This is further demonstrated by the fact that despite RBM continuing to exploit our god-given minerals, over the last five years it has refused to pay us dividends."

They said South Africa must know the real truth about their plight because to date no authority has been prepared to hear their cries and be on their side.

"In fact our story is now written by the most powerful with deep pockets, who seek to portray us as uncivilised, barbaric, mafias, and violent communities that are preventing a powerful multi-national from investing in South Africa.

"As Amakhosi we want to state categorically that we have always welcomed the expansion of RBM into Zulti-South and this we demonstrated by willingly concluding an agreement with RBM in August 2019, an agreement that we both shared with our communities through various community imbizo. It is this agreement that RBM is seeking not to honour. It is RBM that suspended the Zulti-South development purportedly due to violent incidents that occurred in the North, some 42 kilometers away from where the Zulti-South is located.

"According to RBM this project still remains suspended, despite no violent incident being reported over the last five years," they added.

They claimed their communities now live in a semi-state of emergency, alleging that RBM has deployed drones that monitor their activities and that heavy security with automatic weapons continuously intimidate their communities.

"With the assistance of the state we have been investigated by local and foreign agencies at the request and behest of RBM and Rio Tinto. As Amakhosi we welcome any efforts by South African law enforcement agencies to investigate and arrest the perpetrators," read the statement.

Werner Duvenhage, MD for RBM, said they were reviewing the judgment to determine a pathway forward.

"Richards Bay Minerals remains committed to trust reform with principles of good governance as a critical enabler to deliver tangible, long-term benefit to the communities where we operate," said Duvenhage.

The MEC for Cooperative Governance and Traditional Affairs, Reverend Thulasizwe Buthelezi, said the judgement was a significant affirmation of the rights and authority of Amakhosi over their land.Buthelezi believes that the judgement highlights the importance of recognising the key role of Amakhosi in matters concerning land ownership, use, and the resources on that land, within their communities.

"This judgment is an indictment of the hostility and contempt with which RBM treats Amakhosi and serves as a crucial reminder to all stakeholders, including mining entities, that the authority and status of Amakhosi in regulating their own affairs, particularly with regard to land and mineral rights, must be respected and upheld.

"It is vital that mining companies recognise the authority of Amakhosi to govern their land and its resources. This recognition is not just a matter of complying with the law, but a basic need for building trust, promoting social unity, and ensuring fair development that benefits both the companies and the communities," said Buthelezi.

SUNDAY TRIBUNE

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