Rio Tinto has agreed to sell its 69.62% stake in the Rössing uranium mine in Namibia to state-owned China National Uranium Corporation Limited (CNUC) for up to $106.5 million.
Rössing, which began production in 1976, is longest-running and one of the largest open pit uranium mines in the world. It produces and exports uranium oxide from Namibia to nuclear power utilities around the world.
The deal, announced 26 November, includes a cash payment of $6.5 million, payable at completion, and a contingent amount of up to $100 million (linked to uranium spot prices and Rössing's net income during the next seven calendar years).
Rio Tinto will also receive a cash payment if CNUC sells the Zelda 20 Mineral Deposit during a restricted period following completion.
"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," said Rio Tinto chief executive J-S Jacques.
The transaction is expected to be completed in the first half of 2019, subject to various conditions, including approval from the Namibian Competition Commission.
Photo: Rossing uranium mine in Namibia produced 1789 tU in 2017 (Source: Rio Tinto)
