Richards Bay Minerals (RBM) and the Dube, Mkhwanazi, Mbonambi and Sokhulu communities recently signed a landmark agreement securing local business participation in RBMs Zulti South project.
The Zulti South project was approved in April 2019, and its construction and development is expected to result in an investment of USD463-million, about R6-billion into the region.
The agreement is the result of discussions undertaken through a Multi-Stakeholder Forum process to address host community concerns about procurement. The agreement outlines the principles that form the basis for a broad-based structure with the host communities and their partners in the King Cetshwayo District, which will benefit the communities by creating opportunities for participation that would otherwise not have been accessible.
The Consortium established through the agreement will act as a mechanism to accelerate and deliver transformation and empowerment to businesses in the district. Other communities will continue to have the opportunity to participate in contracts other than those ringfenced, with the Provincial government overseeing implementation.
According to Werner Duvenhage, managing director at RBM the agreement is an important milestone for the company. “It underscores our commitment to create truly sustainable development through working with our partners, including the government, suppliers and host communities. This agreement is pioneering and transformative, ensuring that our communities can directly participate in this major project,” says Duvenhage.