Rio Tinto (ASX:RIO) has approved the next stage in the development of Richards Bay Minerals (RBM) in South Africa through the construction of the Zulti South project.
The $463 million (Rio Tinto share $343 million) investment 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 facility. It is South Africa's largest mineral sands company.
Rio Tinto has held a 74 per cent stake in RBM since 2012 and manages the operation.
Rio says it has a long history in South Africa, and today’s investment underscores the company's commitment for the coming decades and beyond.
Shares in Rio Tinto (ASX:RIO) closed 1.57 per cent higher at $101.48 yesterday.