Industry intelligence
Expansion at Rio Tinto’s RBM gets green light
Rio Tinto is to expand operations at its Richards
Bay Minerals project in KwaZulu-Natal.
Diversified miner Rio Tinto has approved the
next stage in the development of Richards
Bay Minerals (RBM) in South Africa
through the construction of the Zulti South
project. The USD463-million (Rio Tinto
share USD343-million) investment will
sustain RBM’s current capacity and extend
mine life.
RBM currently operates four mines in the
Zulti North lease area, a mineral separation
plant and smelting facility. The Zulti North
orebody grade is declining; hence the Zulti
South mine is required to maintain the
output of high-margin zircon and rutile and
provide sufficient ore to support TiO 2 sales.
The Zulti South mine (Phase 1) will
underpin RBM’s supply of zircon and
ilmenite over the life of mine. Construction is
scheduled to start in mid-2019, subject to the
granting of all necessary permits, with first
commercial production expected in late 2021.
The investment will be fully self-funded from
RBM’s cash flows, with no additional debt or
recourse to Rio Tinto. The project is expected
to deliver an internal rate of return of 24%
(Rio Tinto share).
According to Rio Tinto chief executive J-S
Jacques, CEO of Rio Tinto, Zulti South is
one of the best undeveloped minerals sand
deposits in the industry and will significantly
extend RBM’s position as a world-class, first-
quartile asset.
“The long-term fundamentals of the
market remain strong, and production from
Zulti South will commence in time to fill
a widening supply gap, ensuring RBM’s
position as a leader in the sector, and
delivering strong returns to our shareholders,”
he says.
The long-term fundamentals of the market remain strong, and
production from Zulti South will commence in time to fill a widening
supply gap.
Kumba creates jobs
It’s been a long journey to success for Northern
Cape entrepreneurs Paul and Marvin Oss.
This father-and-son team have been running
a small building and civil works company in
Danielskuil for many years but struggled to
secure consistent business in a tough economy.
Today, their company, P&E Artisans,
provides jobs for 35 people in the local
community, with a five-year goal of growing
their employee numbers to more than 100
[4] MINING MIRROR JUNE 2019
as they pursue their vision of becoming an
established civil works resource in the mining
industry.
Life changed dramatically for P&E when
they started working with Anglo American’s
iron ore business unit’s Kolomela Mine in
2015 as part of Anglo American’s Kumba
Iron Ore’s inclusive procurement initiative in
the region. They have since completed several
projects successfully, mainly building steel
structures and manufacturing brackets, and
continue to go from strength to strength.
P&E Artisans is one of hundreds of
small companies across South Africa to
benefit from Anglo American’s Kumba
Iron Ore’s Inclusive Procurement approach,
which creates meaningful entrepreneurial
and employment opportunities in the
communities surrounding its mining
operations.
www.miningmirror.co.za