Rio Tinto group\u2019s new $463 million (R6.7 billion) mining project in South Africa will remain on hold until the security problems that halted work two years ago are resolved.<\/p>\n
Richards Bay Minerals, the South African unit of Rio Tinto, is in talks with the country\u2019s authorities to permanently address violent protests around its operations before resuming work on the Zulti South project, said Werner Duvenhage, RBM\u2019s managing director.<\/p>\n
RBM was forced to halt work at the project in 2019 after a spate of community protests that led to one employee being shot and injured.<\/p>\n
While security has improved and work continues at the rest of RBM’s operations, the company is still concerned about stability at Zulti South and doesn\u2019t know when work will resume.<\/p>\n
\u201cThe project is still suspended but we continue to work with authorities to progress work,\u201d Duvenhage said.<\/p>\n
\u201cIts critical for the long-term sustainability of the entire business that we get Zulti South in operation as soon as we possibly could do that.\u201d<\/p>\n
Rio Tinto\u2019s only South African business employs about 5,000 workers and exports titanium dioxide slag, used to create ingredients for products including paint, plastics, sunscreen and toothpaste.<\/p>\n
Zulti South is intended to extend the life of the entire operation as the commercially viable ore at other sites is depleted. RBM initially targeted completing the project this year.<\/p>\n
The freezing of Zulti South weighs against President Cyril Ramaphosa\u2019s efforts to attract new investment in the country.<\/p>\n
Africa\u2019s most-industrialized economy contracted the most in a century last year after measures aimed at limiting the spread of the coronavirus hampered growth.<\/p>\n
South Africa\u2019s department of mineral resources and energy didn\u2019t immediately respond to emailed questions.<\/p>\n
Community protests around mines relate to issues from poor municipal services to labour conditions and are often marred by violence. RBM has previously said the demonstrations aren\u2019t related to the company.<\/p>\n
While costs associated with the project\u2019s delay aren\u2019t yet significant, \u201cthere will be a time when it will probably be too late\u201d to proceed with development, Duvenhage said.<\/p>\n