By Rhiannon Hoyle

 

SYDNEY--Rio Tinto PLC said it will halt its mineral sands operations in South Africa because of escalating security issues that include the fatal shooting of a senior manager a month ago.

The world's second-biggest miner by market value said it will keep the Richards Bay Minerals mining and smelting operations in South Africa's KwaZulu-Natal province shuttered until safety and security is improved. It declared force majeure on customer contracts.

On May 24, Nico Swart, a general manager for mining operational services at Richards Bay Minerals, was fatally shot on his way to work, an earlier statement from the Rio Tinto subsidiary said. The operations have subsequently faced problems with arson attacks and theft.

"We continue to offer our full support to the investigating authorities and I would like to acknowledge the ongoing support of the regional and national governments and South African Police Service as we work together to ensure that we can safely resume operations," said Rio Tinto minerals chief executive Sinead Kaufman.

Rio Tinto has long grappled with unrest at the South Africa operations, much of it linked to demands for more access to jobs and a greater sharing of the resources wealth with the local community. The mineral sands that the company mines there are used in everything from smart phones to sunscreen.

The Anglo-Australian miner last shuttered the Richards Bay Minerals' operations in 2019 because of violence that included an employee being shot and seriously injured. That shutdown lasted roughly a month.

At that time, it also paused work on the $463 million Zulti South development that is designed to extend the life of Richards Bay Minerals' mining operations as current resources are depleted. Rio Tinto said that project remains suspended.

Rio Tinto owns 74% of Richards Bay Minerals. Blue Horizon--a consortium of investors and host communities--owns 24% and the remaining shares are in an employee trust.

 

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

 

(END) Dow Jones Newswires

June 29, 2021 20:41 ET (00:41 GMT)

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