BL Premium reports that Rio Tinto declared force majeure at its Richards Bay Minerals (RBM) operation in SA, after the murder of a senior manager and continuing violence in surrounding communities disrupted business.
Australia’s Rio said the decision was prompted by violent disruptions that were endangering lives at the mineral sands operation that generates titanium. Force majeure is a legal term in supply contracts that protects companies when there are events beyond their control that disrupt operations. Rio halted its investment in its new R6.5bn Zulti South project in December 2019 because of community unrest and violence, in which an employee was shot and wounded. In May this year, Nico Swart, GM of operational services, was shot dead on his way to work, with more than 20 bullets fired into the car. “After the tragic death of our colleague, Nico Swart, RBM has faced serious challenges in recent weeks, with business disruptions orchestrated by criminals, which have put its people at risk and resulted in the costly destruction and theft of property. As a result of the recent deterioration in the security situation, Rio Tinto has taken the decision to declare force majeure at Richards Bay Minerals,” the company indicated in a statement. RBM employs some 5,000 people. Rio noted that in 2020, RBM contributed R8bn in salaries for its employees, taxes and royalties in SA, and injected R5.5bn more into the economy by buying goods and services.
- Read the full original of the report in the above regard by Allan Seccombe at BusinessLive (paywall access only)
- Read too, Rio Tinto declares force majeure at its Richards Bay operations, at Moneyweb
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