BULKS

Rio Tinto to shut furnace at Richards Bay

Rio Tinto’s Richards Bay Minerals will shut one of its four furnaces as security concerns continue in South Africa’s troubled KwaZulu-Natal province.

 Richards Bay Minerals operation in South Africa

Richards Bay Minerals operation in South Africa

Rio said the closure was due to the depletion of available feedstock, after mining operations were halted last month following security issues "which significantly hampered the mine's ability to operate safely".

An RBM general manager was assassinated on his way to work in May and the violence continued, escalating earlier this month as former South Africa president Jacob Zuma was jailed.

"Shutting a furnace has a major impact on the business and broader community and it not a decision we have taken lightly," Rio chief executive minerals Sinead Kaufman said.

"However, we will not put production ahead of the safety of our people and there are still fundamental criteria that must be met before we can resume operations in a sustainable manner.

She said the company would continue to work with national and provincial governments as well as community structures "to find a lasting solution to the current situation so that operations can resume as soon as it is possible to safely do so".

RBM said it would continue to assess whether to restart the furnace or shut down the others.

It had declared force majeure on RBM customer contracts on June 30 and said all operations at RBM remained halted until further notice.

The company had indefinitely suspended its planned US$463 million Zulti South development in 2019 due to security issues.

The Minerals Council South Africa and unions condemned the recent violence and destruction.

Unions had warned in May of the tinderbox situation in KZN, citing a deadly local leadership squabble, employment demands, endless road blockages, ambiguous social and labour plans and non-compliance and concerns around community relocations and compensation.

Rio owns 74% of RBM, which employs about 5,000 people and is the province's largest taxpayer and a major global producer of heavy mineral sands.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.