Rio Tinto Restarts South African Minerals Project

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Mining major Rio Tinto has restarted a key minerals sands project in South Africa following a five-year hiatus over safety concerns.

Rio Tinto has confirmed the restart of the US$473 million Zulti South minerals sands project in South Africa. 

Troubled Past

The project, being developed by Rio's majority-owned Richards Bay Minerals (RBM), has spent five years on the back burner after periods of community unrest, extreme violence and insecurity. RBM General Manager Nico Swart was assassinated on his way to work in 2021, one of a number of murders of people connected to the project and company. "Lifting the suspension on Zulti South means securing the future of RBM," said Richards Bay Minerals Managing Director Werner Duvenhage. "The decision to proceed also reflects improved security conditions and strengthened community partnerships. This project is not about expansion; it represents our commitment to sustaining jobs and continuing to make a meaningful contribution to the province, the country and the host communities. The support of the government, Amakhosi (tribal/traditional leaders) and host communities has been vital in getting us where we are today and establishing this stability."

Zulti South

The project is vital for RBM, which is South Africa's largest mineral sands producer, extracting titanium, zircon, rutile, iron and slag from the surrounding lands in KwaZulu-Natal province. Over the last 45 years, RBM has been operating four mines in the declining Zulti North lease area, a mineral separation plant and smelting facility. The Zulti South project is key for the company's future and comprises the development of the Zulti South mineral sands mining concession, which is a receiving station at RBM's existing beneficiation plant to the north of Richards Bay. The services corridor is approximately 42 kilometers (km) in length and contains a high-pressure HMC slurry pipeline, a raw water pipeline, and electrical and fibre optic communication cables. China Harbour Engineering Company has been appointed as the engineering, procurement and construction contractor for the project. Rio Tinto stated: "As the orebody at Zulti North declines, Zulti South is important to RBM for maintaining a stable supply of zircon, rutile, and ilmenite and supporting titanium dioxide sales over the life of the mine." The expansion will take 30 months to complete, with the first output expected by the end of 2028. Industrial Info database subscribers can view the project details here. 

Reaction

The restarting of Zulti South was welcomed by South Africa's Department of Mineral and Petroleum Resources (DMPR), which claimed that the "significant capital commitment signals renewed investor confidence in South Africa's mineral resources sector and enhances collaboration between industry, government and host communities." In a nod to the project's troubled past it added: "The department reiterates the importance of sustained collaboration between mining companies, government, traditional leadership structures, organised labour and communities. Stability, social compacting and responsible mining practices remain fundamental to unlocking long-term value from South Africa's mineral endowment while ensuring that the benefits of mineral development are broadly shared."

Key Takeaways 

• Mining major Rio Tinto has restarted the Zulti South minerals sands expansion project in South Africa.
• It comes after years of unrest and the suspension of the project five years ago after the murder of RBM's general manager at the time.
• Rio Tinto will invest US$473 million, with expansion works expected to take 30 months.

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