The two companies had earlier signed an option agreement to restructure Richards Bay Minerals, a mineral sands mining and smelting operation and producer of chloride titanium feedstock located in Kwa-Zulu Natal, South Africa.
As part of the agreement, a provision was made for BHP Billiton to sell its stake in the operations to Rio Tinto pursuant to an agreed valuation process, which was exercised on 1 February 2012.
The transaction leaves Black Economic Empowerment (BEE) parties and employees as the owners of the remaining 24% and 2% stake respectively.
Rio Tinto Diamonds & Minerals chief executive Alan Davies said that with doubling the company’s stake in the operations, Rio Tinto’s titanium dioxide portfolio will be strengthened.
"Demand for feedstocks is expected to grow strongly, needing the equivalent of a new operation the size of RBM to be built every two and a half years," he added.
