Rio Tinto completes sale of stake in Rössing Uranium

16 Jul 2019 16:30pm
SWAKOPMUND, 16 JUL (NAMPA) – Rio Tinto has completed the sale of its entire 69 per cent interest in the Arandis-based Rössing Uranium Mine to China National Uranium Corporation Limited (CNUC).
The sale consists of an initial cash payment of US.dollars 6.5 million (around N.dollars 90.3 million) plus a contingent payment of US.dollars 100 million (N.dollars 1 390 000 000), according to a media release issued by Rio Tinto on Tuesday.
The US.dollars 100 million 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.
Rio Tinto Chief Executive Officer Jean-Sébastien Jacques said the sale demonstrates the company’s commitment to further simplifying and strengthening its portfolio, bringing the total divestment proceeds received since 2017 to US.dollars 11.2 billion (N.dollars 155 680 000 000), of which US.dollars 9.7 billion has been returned to its shareholders.
“I would like to recognise the hard work of people across Rio Tinto and the communities around Rössing who have contributed to the success of the mine and wish them all the best for the future under new ownership,” Jacques said.
Last month, the Namibian Competition Commission approved the acquisition of Rössing Uranium Limited by CNUC, with conditions.
The commission also found that the proposed transaction is unlikely to result in the prevention or substantial lessening of competition or in any underrating acquiring or strengthening a dominant position in the relevant market.