Mining Mirror June 2019 | Page 6

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