Australian mining giant Rio Tinto has agreed to sell its 68.62% stake in Rössing Uranium, owner of the Rössing mine in Namibia, to China National Uranium Corporation (CNUC)
The sale, valued at up to US$106.5mn, will comprise an initial cash payment of $6.5mn upon completion of the deal, and a contingent payment of up to $100mn following that.
Rio Tinto said in its press release announcing the sale that the value of the contingent payment is subject to uranium spot prices and Rössing’s net income over the next seven years.
It added that it will receive a cash payment should CNUC decide to sell the Zelda 20 Mineral Deposit during a set period following the Rössing acquisition.
"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’s Chief Executive J-S Jacques in the press release.
"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."