It was reported that Rio Tinto plc will acquire the majority stake in South African mineral sands group Richards Bay Minerals (RBM) through a deal with joint venture partner, BHP Billiton plc. The mining giant has agreed to buy BHP's 37% stake in the Titanium dioxide feedstock and zircon producer, bringing its total interest to 74%. Black Economic Empowerment (BEE) parties will retain 24% of RBM, with employees holding 2%. The acquisition was triggered by BHP exercising an option agreed by the two companies as part of RBM's restructuring in 2009. The deal sees BHP exiting the mineral sands industry entirely, having only been involved in RBM in a non-operational capacity. Rio Tinto said the cost of acquisition would be set through an agreement already in place, following regulatory approvals. "Doubling our stake in the business solidifies our position at a time when the long-term outlook is strong and demand for higher grade titanium dioxide is growing, driven by urbanisation and rising environmental standards," said Rio Tinto Diamonds & Minerals CE, Harry Kenyon-Slaney.
