Rio Tinto delays mineral sands expansion in S Africa

UK-Australia resources group Rio Tinto's mineral sands expansion in South Africa — which was supposed to start development in June — has been delayed because of continued community engagement.

The $463mn Zulti South project at Richards Bay Minerals (RBM) in South Africa was initially expected to come into production in late 2021, but this could now be later. Rio Tinto's share of the project funding is $343mn through its 74pc shareholding in RBM.

The project is aimed at sustaining capacity and extending mine life at RBM, which currently operates four mines, a mineral separation plant and a smelter at Zulti North. Rio Tinto and its partners in RBM are aiming to underpin zircon and ilmenite output.

Rio Tinto said in its latest quarterly production results that it produced 321,000t of titanium dioxide slag in July-September at RBM and at Rio Tinto Fer et Titane in Quebec, Canada. Output for the first nine months of this year was 920,000t, 12pc higher than a year earlier.

Eight out of nine furnaces operated at Fer et Titane in July-September compared with six out of nine furnaces a year earlier. Three out of four furnaces operated at RBM, unchanged from a year earlier. A decision on restarting idled furnaces will be made on the basis of maximising value over volume.

Rio Tinto's titanium slag guidance for this year has been maintained at 1.2mn-1.4mn t.