Court orders mining company to pay millions in royalties to KZN amakhosi

RBM's argument on poor governance fails to cut it

- By Sihle Mavuso

The clock is ticking for the Rio Tinto-owned Richards Bay Minerals (RBM) in northern KwaZulu-Natal to fork out millions in withheld royalties to four traditional councils.

The company mines titanium and other precious minerals needed by the global tech industry.

The decision comes after the company lost a case in the Pietermaritzburg High Court, where it wanted to be granted an order to change the structures of the trusts where it pays the community dividends, citing several matters.

Among the issues was the governance of the funds that are paid for development purposes and their composition, which included some members of the royal families of the Mkhwanazi, Dube, Mbonambi, and Sokhulu clans.

The company argued that the involvement of amakhosi and royal family members resulted in poor governance, and royalties were withheld.