RICHARDS Bay Minerals will this week shut down its titanium dioxide smelter furnace – for the present – in response to current weak market conditions.
‘We have reached the threshold of operating all four of our furnaces, not only because product demand is low but because it is unsafe as well as unsustainable,’ said RBM Managing Director, Mpho Mothoa.
‘The decision will ensure that the smelter is operated safely at lower production levels and allow the business to remain resilient during these challenging times.
‘The safety and well being of all employees remains our top priority during this difficult time.
‘The rationale for shutting down the furnace is to ensure that the RBM smelter is operated safely at the lower production levels.’
Mothoa believes the market will recover and that the smelter – which cannot simply be mothballed and would have to be rebuilt – could be brought back on line in 2-3 years.
‘Only titanium dioxide slag is affected; our other products are all still viable. That’s the beauty of having diverse products.
Future operations
‘Despite these challenges, RBM is still a fantastic business, competitive in the long term and with a bright future.
‘This is not the first time we have shut down a smelter; we also did so in 2008.
‘Operating one less furnace will save on power and increase our ore-to-power ratio.’
Mothoa said redeployment to other areas of operation would precede any talk of retrenchments, and there were no plans to shut down any of the mining ponds.
‘But our employees are aware and understand that in order to remain sustainable, the business needs to review its operations.
‘We are currently continuing our work to complete the feasibility study for Zulti South and an investment decision is expected in mid-2016.’
