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.

Latest News

Metso expansion in Antofagasta elevates support for Chilean mining

Metso has completed the expansion of its service centre in Antofagasta, Chile, reinforcing its ability... Read more

Alcoa explores feasibility of gallium critical mineral production in WA

Alcoa of Australia Limited, a wholly-owned subsidiary of Alcoa Corporation has announced a Joint Development... Read more

Rio Tinto releases new tailings facilities disclosure

Rio Tinto has published detailed information on its global tailings facilities, in alignment with the... Read more

NGFA applauds Senate confirmation of Lindberg as USDA trade undersecretary

 The National Grain and Feed Association (NGFA) has commended the U.S. Senate for confirming Luke... Read more

Cargill to acquire Mig-Plus, expanding animal nutrition business in Brazil

Cargill, one of the world’s leading food providers, continues to advance its growth strategy in... Read more

Resilient financial results as Rio Tinto grows and diversifies

Rio Tinto has announced a 6% production year-on-year uplift, thereby delivering on strategy through... Read more

K-SURE and Trafigura $200m financing agreement to support Korean shipping

The Korea Trade Insurance Corporation (K-SURE) and Trafigura, a global leader in the commodities industry... Read more

BHP record copper and iron ore production drives strong 2025 performance

BHP have released their Operational Review for the year ended 30 June 2025.BHP Chief Executive Officer... Read more

Dynamic Mining shipping arm and GeoServe’s one-year milestone

A strategic collaboration between Icon Gulf Trading DMCC (part of the Dynamic Group) and GeoServe Energy... Read more

SSAB and Metal Solutions start partnership in fossil-free steel

SSAB and Metal Solutions have entered a long-term partnership for the supply of decarbonized steel with... Read more