Rio Tinto stops operations at SAfrica unit as violence escalates

Rio Tinto on Wednesday said it had curtailed operations at its Richard Bay Minerals unit in South Africa after one employee was shot and another seriously injured in nearby violence.

"As a result, all mining operations at RBM have been halted and the smelters are operating at a reduced level, with a minimum number of employees now on site," Rio Tinto said in a statement.

Construction of Rio's $463m Zulti South project was also temporarily paused.

Titanium dioxide slag production for 2019 was now expected to be at the bottom end of guidance of between 1.2m – 1.4m tonnes and Rio was contacting customers to discuss how to minimise any potential disruptions.

In a separate announcement on Tuesday, Rio said it was investing $1.5bn (£1.15bn) in its US Kennecott copper mine to extend its life until at least 2032.

The miner said the upgrade would almost deliver close to 1m tonnes of refined copper from the Utah project between 2026 and 2032, with the company now having spent $5bn on the operation since buying it in 1989.

The company last week approved a $749m investment in its Greater Tom Price iron ore operations in Western Australia.

Chief executive Jean Sebastian Jacques said the Kennecott plan was an “attractive, high value and low risk investment”.

“The outlook for copper is attractive, with strong growth in demand driven by its use in electric vehicles and renewable power technologies, and declining grades and closures at existing mines impacting supply,” he said.

"Kennecott is uniquely positioned to meet strong demand in the United States and delivers almost 20 per cent of the country's copper production. North American manufacturers have relied on high quality products from Kennecott for the past century and this investment means it will continue to be a source of essential materials into the next decade."