Rio Tinto Halts South Africa Mineral Sands Operations --Update
June 29 2021 - 8:52PM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--Rio Tinto PLC said it will halt its mineral sands
operations in South Africa because of escalating security issues
that include the fatal shooting of a senior manager a month
ago.
The world's second-biggest miner by market value said it will
keep the Richards Bay Minerals mining and smelting operations in
South Africa's KwaZulu-Natal province shuttered until safety and
security is improved. It declared force majeure on customer
contracts.
On May 24, Nico Swart, a general manager for mining operational
services at Richards Bay Minerals, was fatally shot on his way to
work, an earlier statement from the Rio Tinto subsidiary said. The
operations have subsequently faced problems with arson attacks and
theft.
"We continue to offer our full support to the investigating
authorities and I would like to acknowledge the ongoing support of
the regional and national governments and South African Police
Service as we work together to ensure that we can safely resume
operations," said Rio Tinto minerals chief executive Sinead
Kaufman.
Rio Tinto has long grappled with unrest at the South Africa
operations, much of it linked to demands for more access to jobs
and a greater sharing of the resources wealth with the local
community. The mineral sands that the company mines there are used
in everything from smart phones to sunscreen.
The Anglo-Australian miner last shuttered the Richards Bay
Minerals' operations in 2019 because of violence that included an
employee being shot and seriously injured. That shutdown lasted
roughly a month.
At that time, it also paused work on the $463 million Zulti
South development that is designed to extend the life of Richards
Bay Minerals' mining operations as current resources are depleted.
Rio Tinto said that project remains suspended.
Rio Tinto owns 74% of Richards Bay Minerals. Blue Horizon--a
consortium of investors and host communities--owns 24% and the
remaining shares are in an employee trust.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
June 29, 2021 20:41 ET (00:41 GMT)
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