RBM temporarily shuts down six plants
Weak global economy forces Richards Bay Minerals to halt titanium dioxide operations.
ONLY three weeks after Richards Bay Minerals (RBM) announced it would shut down its titanium smelter furnace, the company said it had to temporarily halt a lot more activity at the mineral sands mine owing to weak global market conditions.
On Monday RBM stopped work at six plants – Mining Plant Alpha, Mining Plant Charlie, Mining Plant Delta, all dry mining plants, One Dry Mill and the dry section of the Tailings Treatment Plant.
The sites will be closed until the end of the year as a proactive measure to reduce production of titanium dioxide feedstock in line with low demand for the commodity.
For the month of December only, RBM will also cease activity at its slag plant, mineral separation plant and feed preparation plant.
Titanium dioxide manufacturers around the world have been struggling with massive oversupply and falling prices as growth in the wider economy slows.
RBM Acting Managing Director Joey Kunji-Behari said the shutdown was necessary to ensure the business remains resilient during this challenging period.
‘To ensure that we operate in line with our market demand strategy, we had to review the stock situation and production requirements for the remainder of the current year,’ said Kunji-Behari.
‘It must be stressed that all of the above measures are temporary and will assist us in reducing our working capital by reducing intermediate and final product inventories.
‘This will ensure that we produce sufficient product to supply all of our customer requirements, but at the same time not produce more than is required.
‘In the meantime, we will be carrying out minor maintenance activities, give employees the opportunity to take leave if required and to also complete outstanding training.’
RBM is still continuing its feasibility study for Zulti South, which will increase volumes and lower production costs for titanium dioxide.
The investment decision is expected mid-2016.
Titanium dioxide is beneficiated to provide opacity to products such as paints, plastics or paper and imparts a whiteness to colour cosmetics, personal care products, drugs, sunscreen and toothpaste.
