30th Jun 2021 09:55
(Alliance News) - Global mining group Rio Tinto PLC on Wednesday declared force majeure on customer contracts at subsidiary Richards Bay Minerals in South Africa due to "an escalation in the security situation at the operations".
All mining and smelting operations at RBM, which produces ilmenite from mineral sand deposits, have been halted until further notice, the miner said.
In May, Richards Bay Minerals' general manager for operational services, Nico Swart, was shot and killed while he was travelling to work.
Local news source Zululand Observer reported that more than 20 "high-caliber bullets were sprayed into the victim's vehicle" just before 0700 SAT.
Rion Tinto Chief Executive of Minerals Sinead Kaufman said on Wednesday: "The safety of our people is our top priority. 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."
This is not the first time the miner has halted operations in the area.
In December 2019, Rio Tinto stopped operations at its Richards Bay Minerals unit for a month over similar fears. At the time, Rio Tinto said the halt was due to an "escalation in violence in the communities surrounding the operations".
However, its Zulti South project, which is part of Richards Bay Minerals and is meant to bolster zircon and ilmenite production, has remained on full suspension since the security and community issues in 2019.
The Zulti South project was first approved in April 2019, with first commercial production expected in late 2021.
Rio Tinto shares were down 0.6% at 5,990.00 pence each in London on Wednesday morning.
By Greg Roxburgh; [email protected]
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