- About us
- IBJ Awards
- Free Sample
- Contact us
Rio Tinto agrees Rössing stake sale
(Posted on 27/11/18)
Rio Tinto has entered into a binding agreement with China National Uranium Corporation Limited ("CNUC") for the sale of its entire 68.62 per cent stake in Rössing Uranium Limited ("Rössing"), owners of the Rössing mine in Namibia, for up to $106.5 million.
The total consideration comprises an initial cash payment of $6.5 million, payable at completion, and a contingent payment of up to $100 million following completion. The contingent payment is linked to uranium spot prices and Rössing's net income during the next seven calendar years. In addition, Rio Tinto will receive a cash payment if CNUC sells the Zelda 20 Mineral Deposit during a restricted period following completion. The total consideration is subject to a maximum cap of $106.5 million.
The transaction represents the culmination of an extensive assessment of strategic options considered by Rio Tinto in relation to Rössing.
Rio Tinto chief executive J-S Jacques said "The sale of our interest in Rössing once again demonstrates our commitment to strengthening our portfolio and focussing on our core assets, which deliver sector leading returns in the short, medium and long term.
"Rio Tinto has a long history in Namibia and I would like to thank the many people across Rio Tinto and the communities in which we operate who have contributed to the success of Rössing. I wish them continued success under new ownership. Rio Tinto will work closely with CNUC to ensure a smooth transition and ongoing sustainable operation at Rössing."
The transaction is subject to certain conditions precedent, including merger approval from the Namibian Competition Commission. Subject to these conditions being met, the transaction is expected to complete in the first half of 2019.
Rössing has the world's longest-running open pit uranium mine. Operating since 1976, the Rössing business has produced the most uranium of any single mine. Rössing produces and exports uranium oxide from Namibia to nuclear power utilities around the world.
Rio Tinto and Caterpillar have signed a Memorandum of Understanding (MoU) for Caterpillar’s development... Read more
During a visit to ArcelorMittal Germany’s steel plant in Hamburg, Federal Environment Minister... Read more
Cargotec and SSAB have agreed to work on the introduction of fossil-free steel to the cargo handling... Read more
Australian mining’s long-term partnership with Japan on commodity trade to support economic growth... Read more
ADM has announced that the company has achieved net carbon neutral status for its U.S. flour milling... Read more
GrainGrowers has welcomed the announcement by Australia’s Federal Government to deliver a dedicated... Read more
Marathon Petroleum Corp and ADM have announced an agreement to form a joint venture for the production... Read more
Maritime law specialist Hill Dickinson has boosted its commodities expertise in Asia and the Far East... Read more
The USA’a National Grain and Feed Association (NGFA) has commended Senate lawmakers for passing... Read more
To accelerate its push to become a net-zero operator by 2050, BHP will become a founding member of Komatsu... Read more