'We won't go back until it's safe' — Rio Tinto closes SA operations over violence

Rio Tinto Group declared force majeure on customer contracts at Richards Bay Minerals (RBM) after escalating violence forced it to suspend activity at the mineral sands operation in SA.

MD Werner Duvenhage said the company was prioritising the safety of its 5,000 workers at RBM, which exports titanium dioxide slag used to create ingredients for products including paint, plastics, sunscreen and toothpaste.

The closure of Rio’s only South African business follows the death last month of RBM manager Nico Swart, who was shot on his way to work.

“It has become impossible for us to run the business,” Duvenhage said by phone. “We won’t go back until it's safe for our people.”

The suspension of operations at RBM is a blow to the South African government’s efforts to attract new investment to the country. Violence around RBM forced the operation to temporarily shut in 2019, with work subsequently halted on a $463m (R6.60bn) expansion project.

In recent weeks, mining equipment and infrastructure has been destroyed and access roads blocked. SA mining operations are frequently dogged by community protests which relate to issues ranging from poor municipal services to labour conditions. Duvenhage said there have been reports that the latest violence may be connected to youth unemployment.

RBM’s furnaces are being run on low power as they can’t be shut down completely. The company is engaging regional and national government to get a better understanding of the cause of the violence, Duvenhage said.

SA’s mines and energy ministry didn’t immediately respond to a request for comment from Bloomberg.

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