Richards Bay Minerals Archives - International Mining

Richards Bay Minerals (RBM) has signed a renewable power purchase agreement (PPA) with Khangela Emoyeni Wind Farm (Pty) Ltd to secure 140 MW of wind energy from a new wind farm situated in the Western and Northern Cape Province of South Africa. The project is expected to reduce RBM’s annual carbon emissions by 20%, Rio Tinto says.

Parties to the 20-year PPA include African Clean Energy Developments (Pty) Ltd (ACED), The IDEAS Fund (managed by African Infrastructure Investment Managers), investment holding company Reatile Group and Rand Merchant Bank. EIMS Africa will be responsible for asset management for the project.

Once constructed, the Khangela Emoyeni Wind Farm is expected to produce approximately 460 GWh of renewable energy annually and, through a wheeling agreement with Eskom, will help power RBM’s operations located in Richards Bay in KwaZulu-Natal. The project, with an export capacity of 140 MW, is expected to reach commercial operation within 28 months.

Werner Duvenhage, Managing Director Richards Bay Minerals and Rio Tinto Iron and Titanium African Operations, said “As a world leading mineral sands operation, we are determined to find better ways to produce the materials the world needs and decarbonizing our operations is one of them. Rio Tinto has committed to reduce Scope 1 and 2 emissions by 50% by 2030 and achieve net zero by 2050. The Khangela Emoyeni Wind Farm has the potential to reduce RBM’s annual carbon emissions by 20% and reduce our existing reliance on traditional energy sources by 26%.”

In 2022, RBM signed a similar agreement for the Bolobedu Solar PV plant in Limpopo with Voltalia. The Bolobedu solar PV project, currently in progress is anticipated to meet 17% of RBM’s power consumption by generating up to 300 GWh of renewable energy per annum.

Combined, the Khangela Emoyeni Wind and Bolobedu Solar projects will supply approximately 42% of RBM’s existing energy needs and present opportunities for job creation, skills development and knowledge transfer within local communities, surrounding the project sites, during both the construction and operational phases.

James Cumming, General Manager at ACED, said: “We are immensely proud to have achieved financial close and commenced construction on Khangela Emoyeni Wind Farm, with Rio Tinto’s Richards Bay Minerals. Not only will it provide RBM with clean energy for their operations, but it will also help alleviate South Africa’s power crisis.”

RBM, which Rio Tinto owns 74% of, is a world leader in heavy mineral sands extraction and refining. RBM mines mineral-rich sands in the northern KwaZulu-Natal province and produces materials used in a wide range of everyday products, from paints to smartphones. RBM is committed to sustainable practices and making a positive impact on the communities it serves.

Close to four weeks after deciding to curtail operations at its Richards Bay Minerals (RBM) operations in KwaZulu-Natal, South Africa, Rio Tinto says it has started the process of resuming work at the zircon, rutile, iron and slag works.

The U-turn follows discussions led by the Premier of KwaZulu-Natal, Sihle Zikalala, involving all stakeholders focused on securing stability in order to address the issues in the community and provide the stable environment necessary for RBM to resume operations, Rio said.

Rio, which owns 74% of RBM, previously made the call to suspend work to ensure the safety and security of its employees due to an escalation in violence in the communities surrounding the operations.

In the December 4 announcement, it said: “There has been an escalation of criminal activity towards RBM employees and one was shot and seriously injured in the last few days. 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. Construction of the Zulti South project has also been temporarily paused.”

In its latest statement, the company said a phased restart is now in progress across the operation, with RBM expected to return to full operations in early January, leading to regular production in early 2020.

Having previously advised of a force majeure in supply following the suspension, Rio is now contacting customers to say this declaration has been lifted. The company said it would also review the restart of the Zulti South project after normalisation of operations at RBM.

The $463 million Zulti South project will sustain RBM’s current capacity and extend mine life. RBM currently operates four mines in the Zulti North lease area, a mineral separation plant and smelting complex. The Zulti South mine will underpin RBM’s supply of zircon and ilmenite over the life of mine, according to the company.

Bold Baatar, chief executive, Energy & Minerals, said: “The safety and security of our people is always our first priority and we are pleased that we will now be able to get back to work creating value for our people, our communities, South Africa and RBM’s shareholders.

“I would like to thank the Government of South Africa and the Premier of KwaZulu-Natal for their support and assistance in getting us to a position where we can restart operations at RBM. I would also acknowledge the work of community leaders and the police over the previous few weeks.”

Rio previously advised that titanium dioxide slag production for 2019 was expected to be at the bottom end of 2019 guidance of between 1.2-1.4 Mt.

Richards Bay Minerals secures 140 MW of wind energy for mineral sands ops

Rio Tinto bringing Richards Bay Minerals back online