Rio Tinto invests AU$463mn in Zulti South project, South Africa
Global mining giant Rio Tinto has announced that it will invest AU$463mn in Richards Bay Materials (RBM) based in South Africa during construction of the Zulti South project, enabling RBM to maintain its current operational capacity and extend its existing mines’ longevity.
The Zulti South mine is set to offset the decline of the Zulti North orebody where RBM operates four mines, a mineral separation plant and smelting facility.
“Rio Tinto has a long history in South Africa, and today’s investment underscores our commitment for the coming decades and beyond,” said J-S Jacques, Chief Executive at Rio Tinto, in the firm’s press release on the matter.
“Zulti South is one of the best undeveloped minerals sand deposits in the industry, and will significantly extend RBM’s position as a world-class, first-quartile asset.
“The long-term fundamentals of the market remain strong, and production from Zulti South will commence in time to fill a widening supply gap, ensuring RBM’s position as a leader in the sector, and delivering strong returns to our shareholders.”
Construction on the Zulti South project is set to begin in mid-2019, with commercial production expected to start in late 2021.