Rio Tinto paused the expansion of its Richards Bay Minerals subsidiary in South Africa's KwaZulu-Natal province. The decision follows failed negotiations with state-owned logistics operator Transnet regarding ore transport.
Rio Tinto halted investment after Transnet proposed using trains designed for sugar shipments to transport mineral ore. The mining giant deemed the sugar train solution unsuitable for its operations.
Rio Tinto shares rose Monday as iron ore prices climbed above $100 per ton. A separate strategic update highlighted increasing demand for copper and lithium driven by AI and electrification.