Cape Times 2026-03-04

Rio Tinto says investment will secure supply of zircon, rutile and ilmenite - key feedstocks for titanium dioxide Rio Tinto has approved an investment of about R8.5 billion in the Zulti South project at its Richards Bay Minerals (RBM) operation in South Africa, lifting a suspension that has been in place since January 2020. The project was originally halted due to escalating security concerns, community unrest and operational disruptions in KwaZulu-Natal, including violent attacks, arson and damage to company property that affected RBM’s mining operations and led to the declaration of force majeure at the time. Rio Tinto said on Tuesday the investment would extend the life of the mine to 2050 and secure the long-term supply of zircon, rutile and ilmenite, key feedstocks for titanium dioxide production. RBM currently…

South Africa’s interest rate outlook has become increasingly uncertain as escalating conflict in the Middle East drives volatility in oil prices, the rand and global financial markets, raising fresh questions about whether the South African Reserve Bank (Sarb) will proceed with further rate cuts this year. At the start of 2026, the case for additional monetary easing appeared solid. Consumer price inflation stood at 3.5% year-on-year in January, comfortably close to the preferred 3% anchor. With inflation well contained and economic growth modest, expectations had built around one further 25 basis point repo rate cut later this year to put the repo rate at 6.5%, and possibly another in early 2027. The domestic growth backdrop remains subdued. GDP is forecast to improve only mildly to around 1.6% in 2026 from…

South Africa has vowed to continue to push for stable and predictable trade relations with the United States despite mounting pressure from renewed tariff measures and shifting global trade dynamics. Appearing before Parliament's portfolio commitee on Tuesday, the Department of Trade, Industry and Competition (the dtic) acknowledged that efforts to strengthen trade ties with the US have been complicated by “tariff wars” and policy uncertainty emanating from Washington. The dtic director-general, Simphiwe Hamilton, said the department's target of improving trade relations with the US has been challenged by developments beyond South Africa’s control, including the reintroduction of certain trade measures by the current US administration. While a US Supreme Court ruling struck down US President Donald Trump's sweeping “Liberation Day” tariffs, Hamilton noted that new instruments have since been introduced…

The government has stepped up efforts to prevent the provisional liquidation of Tongaat Hulett Limited (THL), warning that the collapse of the sugar producer would have devastating consequences for thousands of jobs and rural livelihoods, particularly in KwaZulu-Natal. Last month, Tongaat Hulett business rescue practitioners announced that they had filed an application to the High Court seeking to discontinue business rescue proceedings and place the company’s South African operations into provisional liquidation, following an extensive and exhaustive process to rescue it. The Department of Trade, Industry and Competition (the dtic) on Tuesday confirmed that it will oppose the liquidation proceedings currently before the courts and continue supporting lawful efforts to secure a viable and durable solution for the embattled company. The dtic director-general Simphiwe Hamilton told Parliament that both the…

Last week’s budget delivered encouraging signals for business confidence and infrastructure investment. While not addressing every challenge we face, it demonstrated continued fiscal discipline and improving infrastructure spending that should help unlock the private sector investment South Africa desperately needs. The fiscal position is clearly on an improving trajectory. The government is on track to deliver a primary surplus for the third consecutive year, meaning revenue exceeds non-interest spending. The debt-to-GDP ratio is stabilising and beginning to decline. Tax collection performance remains strong, with SA Revenue Service exceeding revenue targets. This matters. It is what enabled the S&P credit upgrade, what drives lower borrowing costs, and what gives investors confidence that South Africa won’t face a fiscal crisis. The macroeconomic stability this creates is the foundation for everything else. I…

South Africa’s plans to develop electric vehicle (EV) battery manufacturing capacity are firmly aimed at global competitiveness rather than narrow import substitution, the Department of Trade, Industry and Competition (the dtic) director-general Simphiwe Hamilton told Parliament on Tuesday. Appearing before the parliamentary portfolio committee on trade and industry, Hamilton addressed concerns raised by DA MP Toby Chance about whether the push for local battery production was primarily driven by localisation requirements or whether it would be globally competitive. Chance cautioned that building battery manufacturing capacity without ensuring international competitiveness could leave South Africa supplying only domestic demand while struggling to compete in export markets. “Is the intention to build local batteries driven by the need for localization or is there going to be a global competitive element to sit on?”…