Global mining giant pumps R7.6 billion into important South African town

Rio Tinto approved a $473 million (R7.6 billion) mine expansion at its Richards Bay Minerals unit, ending a prolonged suspension of the South African project.

The Zulti South project will extend the life of the mine to 2050 and “ensure RBM’s operational continuity for years to come,” Rio said in an emailed statement Monday. Work was halted at the end of 2019 amid violent community protests.

RBM – 74% owned by Rio – mines mineral sands in KwaZulu-Natal province and exports titanium dioxide slag, which is used to create ingredients for products including paint, plastics, sunscreen and toothpaste.

“The decision to proceed also reflects improved security conditions and strengthened community partnerships,” Werner Duvenhage, RBM’s managing director, said in the statement.

China Harbour Engineering Company is the contractor appointed to construct Zulti South, according to the statement.

The selection is due to the state-owned Chinese firm’s “proven performance and strong track record including a strategic partnership with Rio Tinto” on the vast Simandou iron ore project in Guinea, it said.

RBM’s expansion is expected to take 30 months and start commercial production in late 2028.