First impressionIn our view, the announced curtailing of operations at Richards Bay Minerals (RBM) is more likely to weigh on investor sentiment, rather than a material impact to earnings and valuation. Whilst a paucity of disclosure around the Iron and Titanium division (RIO provides aggregate metrics for multiple assets) makes ascertaining the financial impacts of an extended curtailment at RBM challenging, we estimate the RTIT division will account for ~3-4% of Group level EBITDA for 2019/2020 (or 2% of RBCe NAV). Any decline from lower volumes at RBM could be comfortably offset by an increase to the iron ore price. Any extended curtailment of operations at RBM should cause a tightening of the demand/supply balance in the mineral sands space (specifically zircon and titanium dioxide) given the few players in the space. The announcement also serves to highlight – as another piece of evidence – that resources companies are becoming acutely more sensitive to ESG-type issues. Today's announcementRio Tinto Limited (RIO) has announced its decision to curtail operations at Richards Bay Minerals (RBM) in South Africa. All mining activities have been halted and smelters are running at reduced levels, following an escalation of violence surrounding the operations. There has also been a pause in the construction of Zulti South – the project is required to sustain capacity of RBM given the declining grade profile at Zulti North. There is no timeline around a return to “normal operations”, however, RIO has indicated that titanium dioxide slag production for 2019 is now expected to be at the bottom end of guidance for 2019 (1.2-1.4Mt, RBCe 1.24Mt). 2020 guidance will ... | 
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