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    You are at:Home»More»Energy Capital Power»Rio Tinto gives green light to RBM’s R8.5bn Zulti South project
    Energy Capital Power

    Rio Tinto gives green light to RBM’s R8.5bn Zulti South project

    Xsum NewsBy Xsum NewsMarch 6, 2026No Comments3 Mins Read6 Views
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    Construction is expected to begin in the first quarter of 2026 and take 30 months to complete, with first commercial production scheduled for the fourth quarter of 2028.
    RBM contributed R7 billion to the South African economy in 2024, including R1.1 billion in corporate taxes and R218 million in mining royalties.
    The investment is expected to sustain around 5,000 direct and indirect jobs at the site until 2050.

    Multinational mining company Rio Tinto has formally approved an investment of approximately R8.5 billion to restart mining company Richards Bay Minerals’ (RBM) Zulti South project in South Africa. The funding will end a six-year suspension that began in January 2020. The project will extend the operational life of the mineral sands facility until 2050, avoiding a complete production shutdown.

    This investment is aimed at stabilizing the supply of zircon and rutile while maintaining local employment levels. After years of force majeure declarations and security-related closures, the question now is whether RBM can successfully carry out this 30-month construction phase to secure the country’s industrial future.

    Construction logistics and 2028 goals

    Construction will begin in the first quarter of 2026 under the management of EPC contractor China Harbor Engineering Corporation (CHEC). This schedule mandates a 30-month completion schedule, with commercial production targeted for Q4 2028. CHEC will install the necessary infrastructure to transport ore from the new dunes to the existing smelter.

    Duvenhage cited CHEC’s track record in Simandou as a key driver for the partnership. Wu Di, Vice President of CHEC, emphasized that the selection was based on shared values ​​and quality of performance.

    Zuti South will serve as a replacement deposit for the Zulti North lease area, which currently has degraded ore grades. Without this new feedstock, RBM’s mineral separation plants and smelting facilities will face a production cliff. The site will provide the raw material ilmenite needed for titanium dioxide production until 2050.

    Economic impact on South African industry

    RBM’s operations, which are 74% owned by Rio Tinto and 26% by the Buller Horizon Community Consortium, contributed R7 billion to the South African economy in 2024. This includes R1.1 billion in corporation tax and R218 million in mining royalties. The investment in Zuti South is aimed at sustaining 5,000 direct and indirect jobs at the site over the next 24 years.

    The restart of the project reflects a transformation in regional relations, as described by Werner Dubenhage, managing director of Rio Tinto’s iron and titanium Africa business and RBM. He blamed improved security conditions and stronger collaboration between government officials and the local Amakhosi (traditional Zulu leaders).

    Signal to South African mines

    The approval of Zuluti South is a vote of confidence in South Africa’s ability to stabilize mining areas through community engagement as well as enforcement.

    If delivered as planned, this project could serve as a model for navigating the complex stakeholder environment across the country’s extensive mineral sands and platinum belt operations. For KwaZulu-Natal, this represents one of the province’s most economically important projects, with thousands of direct and indirect jobs continuing until mid-century.

    green light project R8.5bn RBMs Rio South Tinto Zulti
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