https://www.engineeringnews.co.za
Africa|Business|Energy|Mining|PROJECT|Resources|SECURITY|Services|Products|Operations
Africa|Business|Energy|Mining|PROJECT|Resources|SECURITY|Services|Products|Operations
africa|business|energy|mining|project|resources|security|services|products|operations

Rio Tinto South African project in limbo on security concerns

7th April 2021

By: Bloomberg

  

Font size: - +

Rio Tinto Group’s new $463-million mining project in South Africa will remain on hold until the security problems that halted work two years ago are resolved.

Richards Bay Minerals, the South African unit of Rio Tinto, is in talks with the country’s authorities to permanently address violent protests around its operations before resuming work on the Zulti South project, said Werner Duvenhage, RBM’s MD.

RBM was forced to halt work at the project in 2019 after a spate of community protests that led to one employee being shot and injured. While security has improved and work continues at the rest of RMB’s operations, the company is still concerned about stability at Zulti South and doesn’t know when work will resume.

“The project is still suspended but we continue to work with authorities to progress work,” Duvenhage said. “Its critical for the long-term sustainability of the entire business that we get Zulti South in operation as soon as we possibly could do that.”

Rio Tinto’s only South African business employs about 5 000 workers and exports titanium dioxide slag, used to create ingredients for products including paint, plastics, sunscreen and toothpaste. Zulti South is intended to extend the life of the entire operation as the commercially viable ore at other sites is depleted. RMB initially targeted completing the project this year.

The freezing of Zulti South weighs against President Cyril Ramaphosa’s efforts to attract new investment in the country. Africa’s most-industrialised economy contracted the most in a century last year after measures aimed at limiting the spread of the coronavirus hampered growth.

The Department of Mineral Resources and energy didn’t immediately respond to emailed questions.

Community protests around mines relate to issues from poor municipal services to labor conditions and are often marred by violence. RMB has previously said the demonstrations aren’t related to the company.

While costs associated with the project’s delay aren’t yet significant, “there will be a time when it will probably be too late” to proceed with development, Duvenhage said.

Edited by Bloomberg

Comments

Showroom

SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.16 0.213s - 162pq - 2rq
Subscribe Now