Rio Tinto Declares Force Majeure in South Africa Due to Violence

(Bloomberg) — Rio Tinto Group declared force majeure on customer contracts at Richards Bay Minerals after escalating violence forced it to suspend activity at the minerals sands operation in South Africa.

Managing Director Werner Duvenhage said the company is prioritizing 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 its 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 $463 million expansion project.

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

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

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

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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