Rio Tinto is weighing a $450m investment in its Richard Bay Minerals operation, according to South Africa’s mining minister.
Mosebenzi Zwane said he had met the Anglo-Australian company in recent days where they discussed plans to push ahead with the Zulti South project.
“The company has also demonstrated its willingness to align with government policies, by exceeding the targets we have set for empowerment and transformation,” Mr Zwane claimed. He was speaking at the Mining in African Mining Indaba in Cape Town.
Proposed changes to South Africa’s mining charter, which are being challenged in court, have made many mining companies wary of investing in the country.
“The board is due to make a decision on the Zulti South investment this year,” a spokesman for Rio said.
Richards Bay Minerals in KwaZulu-Natal province produces titanium dioxide, which is used to create white pigment for paints, as well as rutile and zircon, two niche minerals.
The Zulti South project is aimed at sustaining slag production capacity for the smelter at Richards Bay.
Rio will announce annual results on Wednesday when it is tipped to announce a record dividend.
Source: FT.com
