Rio Tinto considers options to exit RBM

GLOBAL miner Rio Tinto is “evaluating its options” for its Richards Bay Minerals (RBM) titanium business and actively testing the market for its borates business, it said in its first quarter production update.The group’s production of titanium dioxide slag dropped 2% to 218,000t in the March quarter compared with the same quarter a year ago, as it said it aligned production to market demand. It is continuing to operate three out of four furnaces at RBM.Last year Reuters reported that Rio Tinto was considering swapping some of its assets, including its stake in West African iron ore producer Simandou and its 74% of RBM, for Chinalco’s 11% stake in Rio Tinto. Shortly after taking office in September, Rio Tinto CEO Simon Trott put RBM on review, due to weak markets and disappointing returns from the asset.China is by far the world’s biggest titanium producer, followed by Mozambique, where Kenmare Resources operates the Moma mine. Last year, in response to weak market conditions, Kenmare retrenched 15% of its employees at Moma and suspended its final dividend.In March Rio Tinto gave the green light to the expansion of RBM to a new area, Zulti South. The total project cost is $473 million, of which Rio Tinto’s share will be $350 million, and it will expand the mine’s life to 2050. The project was first scoped in 2019 and then suspended due to community-related violence.Rio Tinto said construction has begun and it will take 30 months to complete. Initial production will be in the fourth quarter of 2028. The first phase of the project will support production of zircon and ilmenite, and a second phase will follow.The post Rio Tinto considers options to exit RBM appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com