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 chief executive J-S Jacques has said, on the release of first quarter production results, &... Read more
BHP has released its operational review for the nine moinths ended 31st MarchBHP Chief Executive Officer... Read more
RUSAL, one of the leading global aluminium producers, and Braidy Industries Inc., a US base holding... Read more
GrainCorp Limited has announced its intention to demerge its global malting business, subject to shareholder... Read more
The USA Aluminum Association has released a joint letter with the Aluminium Association of Canada and... Read more
The International Energy Agency (IEA) released its annual Global Energy & CO2 Status Report... Read more
K+S has entered into an agreement with the Australian company, Kalium Lakes, for the purchase of up... Read more
RUSAL, one of the leading global aluminium producers, and PJSC RusHydro, one of Russia's largest generating... Read more
Bühler has joined the World Business Council for Sustainable Development (WBCSD), a global network... Read more
RUSAL, one of the leading global aluminium producers, completes preparations for construction of the... Read more