24th Mar 2020 09:20
(Alliance News) - Rio Tinto PLC said Tuesday it has been forced to slow down some of its operations following separate actions by the governments of Canada and South Africa.
Following the implementation of a 21-day lockdown in South Africa with effect on Thursday, the FTSE 100 miner will halt all mining operations at Richards Bay Minerals for the lockdown's duration.
The group will arrange for the furnaces to be put on care and maintenance in order to avoid damage to their continuous operations. In addition, construction of the Zulti South project will be delayed.
In Canada, the government announced the closure of all non-essential businesses with effect on Monday to April 13.
Rio Tinto noted that the Quebec government has designated industrial complexes in the aluminium sector and the mining industry as "essential" but did say they must reduce business activity to the minimum.
The group said at the time it was too early to speculate on when operations in South Africa will resume or on its 2020 production guidance.
"The health and safety of our people is Rio Tinto's key priority and we are supportive of the action being taken by various governments to address the threat of Covid-19. We will continue to work with our employees, customers, communities and suppliers to minimise any impact of action being taken to reduce the spread of Covid-19," said Chief Executive Officer Jean-Sebastien Jacques.
Shares in Rio Tinto were up 6.4% at 3,297.00 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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