Africa-Press – South-Africa. Mining giant Rio Tinto is undergoing a massive restructuring and has placed its South African operation, Richards Bay Minerals (RBM), under strategic review.
RBM is a leader in mineral sands extraction and refining. It mines the sands north of KwaZulu-Natal and primarily produces zircon, rutile, iron and slag.
It also hosts the world’s largest titanium smelter in the southern hemisphere and employs around 5,000 people. The smelter uses more power than the entirety of the City of Johannesburg.
The company has been a major contributor to KwaZulu-Natal for nearly half a century and is the largest taxpayer in the province.
RBM is a joint venture between Rio Tinto, 74%, and Blue Horizon, a consortium of investors and housing communities Mbonambi, Sokhulu, Mkhwanazi and Dube, which owns 24%. The remaining shares are held in an employee trust.
However, the local operation is facing an uncertain future after Rio Tinto announced a new operating model to streamline the organisation and deliver shareholder value.
Rio Tinto has simplified its product group structure into three businesses: Iron Ore, Aluminium & Lithium, and Copper.
“This focused structure and leadership positions each business to deliver excellence for customers and maximise competitive advantages and growth potential, while benefitting from the diversified group,” it said.
Outside of the three core product groups, Rio Tinto’s Borates and Iron & Titanium businesses will move to the Chief Commercial Officer’s portfolio for strategic review.
Although an update on the outcome of these reviews will still come in due course, considering that RMB’s operations are no longer “core”, a sale or closure may be on the cards.
“Throughout this review process, these businesses will continue to focus on running safely and profitably to meet customer commitments,” said Rio Tinto.
The British-Australian Rio Tinto operates across 35 countries and is the world’s second-largest metals and mining corporation.
The company, which was founded in 1873 in Spain, has a market cap of AUD170 billion (about R1.9 billion).
RMB has faced extreme challenges in recent years, including the assassination of its general manager, petrol bombings and other violence which led to the company declaring a force majeure.
Not the first company
Rio Tinto is not the first international company that looks set to scale back in South Africa, with many international companies shutting down or downsizing their local operations.
In the mining space, Anglo American recently dumped its platinum subsidiary, Anglo American Platinum, as part of a global restructuring.
The move came amid a takeover bid from its rival BHP, and forms part of the group’s plan to free up capital and management time.
Despite selling Anglo American Platinum, which was renamed Valterra Platinum, Anglo American will keep its majority share in South African-based Kumba Iron Ore.
In the energy space, Shell is also looking to sell its downstream business in South Africa, which includes hundreds of petrol stations.
Shell is the third-largest petrol station operator in the country after Engen and Astron/Caltex. Despite the sale, the group also intends to keep its upstream business despite several legal battles.
Plastic contained giant Tupperware has also exited South Africa as part of a larger liquidation and restructuring strategy for the US-based company.
The company filed for Chapter 11 bankruptcy in September 2024 due to declining sales and worsening financial circumstances, and is leaving South Africa to focus on key markets.
In the financial sector, UK-based HSBC said it would exit South Africa, with FirstRand set to take over its clients on 31 October 2025.
French-based BNP Paribas also announced it had stopped its operation in South Africa as it scales back from Africa to focus on Europe and Asia.
Online trading provider IG Group also shut down its operations in South Africa, even though local customers can still receive service via its international subsidiaries.
Consulting giant Bain & Company is also shutting down its consultancy operations in South Africa following its involvement in state capture.
The consultancy has been barred from government contracts following its involvement in state capture at SARS. The fallout from this has limited its relationship with the private sector.
Major international companies leaving South Africa
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