Rio Tinto to sell stake in Rossing Uranium
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Global miner Rio Tinto says it will sell its entire stake in Rossing Uranium to China National Uranium Corporation for up to $106.5 million.
The sale of the 68.62 per cent stake in Rossing Uranium, which owns the Rossing mine in Namibia, ends a period of extensive strategic assessment, the miner said in a statement.
"The sale of our interest in Rossing once again demonstrates our commitment to strengthening our portfolio and focusing on our core assets," Rio Tinto chief executive Jean-Sebastien Jacques said.
The deal is subject to certain conditions, including approval by the Namibian Competition Commission.
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 Rossing’s net income during the next seven calendar years.
China National Nuclear Corporation, which is an affiliate of CNUC, owns 25 per cent of Paladin Energy’s Langer Heinrich uranium mine in Namibia.