More mineral mining south of Bay

RICHARDS Bay Minerals (RBM) will join the buzz to mine minerals further south of Richards Bay after getting the green light from its father company Rio Tinto.

The company’s Acting Managing Director Ben Baxter announced on Tuesday it will get the R5 billion Zulti South expansion project off the ground with a feasibility study to start development of the company’s new sands minerals mine.

Running along the coast near eSikhawini, the mine will draw out heavy minerals including ilmenite, to produce titanium dioxide feedstock and pig iron, ultimately used in making automotive parts, ceramic tiles and sanitary ware.

It will be the second in the region with Tronox KZN Sands currently constructing their Fairbreeze Mine south of Mtunizini.

‘It is a very expensive venture so it is under a lot of scrutiny by Rio Tinto, but we are hopeful and positive about it,’ said Baxter.

‘By 2017, we’ll start running out of minerals if Zulti South doesn’t happen so it is a key part of RBM’s future.

‘The most important aspect we’re focussing on, at this stage, is obtaining a water-use licence.’

RBM presented its pre-feasibility study for the expansion endeavour to the Rio Tinto Technical Evaluation Group between 9 and 13 December to review the project status and make necessary recommendations before presenting it to the mining major’s investment committee.

Its approval was announced last week.

If all goes according to plan, Zulti-South’s Phase One will include infrastructure development and a 2 500 tonnes per hour (tph) dry mining operation forecasted to come on-stream in the first quarter of 2017.

Its second phase will allow 1 250 tph dry mining in 2021.

RBM supplies 14% of the world’s titanium dioxide requirements and represents 0.83% of the total South African government revenue.

It is also the largest single tax payer in KwaZulu-Natal, providing 3.5% of KZN’s gross geographic product.