Rio Tinto to sell stake in African uranium mine for up to $106.5m
Global mining group Rio Tinto has agreed a deal to sell its stake in Rossing uranium mine in Namibia to China National Uranium Corp for up to $106.5m (£83m).
Rio Tinto is selling its entire 69 per cent in Rossing Uranium Limited, which owns the mine, for an initial sum of $6.5m, the company said today.
The deal also includes a contingent payment of up to $100m, which is linked to uranium prices and income from the mine over the next seven years.
The Anglo-Australian mining company said the sale marks the end of an extensive assessment of strategic options.
Rio Tinto chief executive Jean-Sebastien Jacques said: "The sale of our interest in Rossing 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.”
The sale comes weeks after a deal between Rio Tinto and another Chinese firm fell through.
Rio Tinto had signed an agreement to sell its stake in a Guinea iron mine to Chinalco for $1.3bn, but the deal lapsed.
Shares in Rio Tinto rose a marginal 0.4 per cent in morning trading.
The deal for the Namibian mine is expected to complete in 2019, subject to approval from the Namibian Competition Commission.