Rio Tinto to slow mining

Operations to stop in South Africa, be scaled back in Canada

RIO Tinto says it will halt mining in South Africa and slow its work in Canada as governments around the world take action to contain the spread of COVID-19.

The mining giant says it will tomorrow halt its mineral sands mining at Richards Bay Minerals in South Africa for 21 days, in line with a government lockdown directive.

Mining furnaces will be put on care and maintenance mode to avoid damage to their continuous operation, and it is too soon to speculate on when operations might resume, Rio Tinto said.

In Quebec, industrial complexes such as Rio Tinto’s aluminium smelters and titanium oxide mine are considered essential activities so won’t have to close but must reduce business activity to a minimum.

Rio Tinto chief executive Jean-Sebastien Jacques (right) said that the company supported action taken by various governments to address the threat of the virus and would work with employees, customers, communities and suppliers to minimise any disruption.

“The health and safety of our people is Rio Tinto’s key priority,” he said.

At 11.32 AEDT, Rio Tinto shares were down 1.3 per cent to $77.72.

Rio’s decision comes as Santos and Fortescue predicted they would weather the storm of the global coronavirus crisis.

Elsewhere in the resources sectors, Viva Energy, which operates petrol stations under the Shell brand, said the impacts of COVID-19 on its business remained uncertain.

Demand for aviation fuel had slackened substantially but so far demand for petrol had been relatively stable.

“We expect to see some impacts to retail and commercial sales demand over time, although this remains uncertain and will depend on the scope and duration of reduced economic and social activity,” Viva Energy said.

Viva Energy said that it had a strong balance sheet with net debt of just $137.4 million, out of a total debt facility of US$700 million ($A1.18 billion), and so was in a strong position to manage the COVID-19 response.

Viva Energy shares were up 6.7 per cent to $1.285.