News24 reports that Richards Bay Minerals (RBM) faces an uncertain future amidst a shake-up at its giant mining owner, Rio Tinto. Last week, RBM was classed as part of the group’s “non-core” businesses and put on strategic review. Typically, this means a company may be put on the chopping block to be sold, closed or downscaled.
RBM hosts the largest titanium smelter in the southern hemisphere and employs almost 5,000 people. It mines the Zulti North mineral sands deposit on the KwaZulu-Natal (KZN) coast, and is a critical supplier of titanium dioxide, pig iron, and zircon. RBM spends some R1 billion every month and is the largest single taxpayer in KZN.
Last week, Rio Tinto, the world’s second-largest mining company, announced a new operating model and executive team “to shape the company’s next chapter”. Effective immediately, Rio Tinto will simplify its product group structure to three businesses, namely iron ore, aluminium and lithium; and copper. The group classed Rio Tinto’s Borates and Iron and Titanium businesses – under which RBM falls — as “non-core”, and it will move to the Chief Commercial Officer’s portfolio for strategic review. “An update will be provided on the outcome of these reviews in due course. Throughout this review process, these businesses will continue to focus on running safely and profitably to meet customer commitments,” Rio Tinto indicated. The shake-up came just two days after Simon Trott took up the role of Rio Tinto CEO.
- Read the full original of the report in the above regard by Lisa Steyn at News24 (subscription / trial registration required)
- Read too, Rio Tinto set to exit SA in major reset under new CEO, at BusinessLive (subscriber access only)
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