Mining giant Rio Tinto has completed the sale of its entire stake in the Rössing Uranium Mine in to the China National Uranium Corporation Limited (CNUC) for an initial cash payment of N$91 million (US$6,5 million) plus a contingent payment of up to N$1,4 billion (US$100 million).
According to a statement issued by the mining giant, Rio Tinto received an initial cash payment of N$91 million. The outstanding N$1,4 billion will be received in contingency payments, 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 signed a binding agreement with CNUC in November last year for the sale of its entire 68.62% stake in Rössing for up to N$1,5 billion ($106.5m).
Rio Tinto’ chief executive, J-S Jacques said: “This sale demonstrates Rio Tinto’s commitment to further simplifying and strengthening our portfolio and brings the total divestment proceeds received since 2017 to US$11.2 billion, of which US$9.7 billion has been returned to our 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.”
Before the sale was finalised Rio Tinto’s Energy and Minerals group included two uranium operations in Energy Resources of Australia and Rössing Uranium in Namibia. The company also has a uranium project in Canada.