Rio Tinto approves R8.5bn Zulti South investment, lifts project suspension
Mining major Rio Tinto has approved its subsidiary Richards Bay Minerals’ (RBM’s) Zulti South project, lifting the suspension which had been in place since January 2020.
The about R8.5-billion ($473-million) investment is aimed at extending the mine's life to 2050 and ensuring RBM’s operational continuity for years to come.
RBM currently operates within the Zulti North lease area, which includes a mineral separation plant and smelting facility.
As the orebody at Zulti North declines, Zulti South is indicated to be important to RBM for maintaining a stable supply of zircon, rutile and ilmenite and supporting titanium dioxide sales over the life of the mine.
China Harbour Engineering Company (CHEC), which has an established relationship with Rio Tinto, has been appointed the engineering, procurement and construction contractor for the construction of Zulti South.
“Lifting the suspension on Zulti South means securing the future of RBM. This project is not about expansion; it represents our commitment to sustaining jobs and continuing to make a meaningful contribution to the province, the country and the host communities.
“The decision to proceed also reflects improved security conditions and strengthened community partnerships. The support of government, Amakhosi and host communities has been vital in getting us where we are today and establishing this stability. We are committed to working with all stakeholders to ensure the project’s continued success,” Rio Tinto Africa iron and titanium MD and RBM MD Werner Duvenhage says.
“CHEC’s successful record at [the Simandou iron-ore mine, in Guinea], along with their established presence on the continent, including South Africa, gives us confidence in their ability to deliver Zulti South safely, efficiently and in alignment with our community and local content commitments,” he adds.
“We are honoured to be chosen as Rio Tinto’s strategic execution partner for Zulti South. Our relationship is founded on trust, performance and shared values. We are committed to delivering a project that strengthens RBM’s future and benefits local communities,” says CHEC VP Wu Di.
Construction is anticipated to start in the first quarter of this year and will take 30 months to complete, with initial commercial production expected in the fourth quarter of 2028.
This first phase will support RBM’s supply of zircon and ilmenite, while the second phase will follow as part of the long-term development strategy.
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