Rio Tinto sells uranium mine for 495 million dollars
Anglo-Australian miner Rio Tinto said on Thursday it had agreed to sell its Kintyre uranium mine project in western Australia for 495 million US dollars (315 million euros).
By Agencies |
LONDON: Anglo-Australian miner Rio Tinto said on Thursday it had agreed to sell its Kintyre uranium mine project in western Australia for 495 million US dollars (315 million euros).
The London-listed resources giant said in a statement that it would sell the facility to a joint venture that comprises Canadian uranium miner Cameco and Japanese finance giant Mitsubishi Corporation.
The Kintyre project is a uranium mining site under development in the East Pilbara region of Western Australia. The sale was expected to be completed in August.
The disposal is part of Rio Tinto's strategy to fend off a hostile takeover approach from resources giant BHP Billiton earlier this year which valued it at 147.4 billion US dollars.
"This sale brings us closer to achieving our asset sales target of 10 billion US dollars in 2008," said Guy Elliott, chief financial officer of Rio Tinto, in the statement.
"It illustrates our ability to obtain real value for our assets and follows the sales earlier this year of the Greens Creek mine in Alaska for 750 million dollars and our interest in the Cortez operation in Nevada for 1.695 billion dollars.
"These transactions bring transparency to the value inherent in Rio Tinto's portfolio of high quality assets." A combination of BHP Billiton and Rio Tinto, the world's biggest and third-biggest miners respectively, would create a titan at a time when commodity prices are enjoying record highs because of surging demand.
However, last week, the European Commission opened an in-depth antitrust probe into mining giant BHP's hostile takeover bid over "serious doubts" the deal could stifle competition amid soaring prices for raw materials.
Europe's top antitrust watchdog said it would rule by November 2008 on whether to block the bid or allow BHP Billiton to go ahead with plans to forge an unrivalled global resources giant.
The London-listed resources giant said in a statement that it would sell the facility to a joint venture that comprises Canadian uranium miner Cameco and Japanese finance giant Mitsubishi Corporation.
The Kintyre project is a uranium mining site under development in the East Pilbara region of Western Australia. The sale was expected to be completed in August.
The disposal is part of Rio Tinto's strategy to fend off a hostile takeover approach from resources giant BHP Billiton earlier this year which valued it at 147.4 billion US dollars.
"This sale brings us closer to achieving our asset sales target of 10 billion US dollars in 2008," said Guy Elliott, chief financial officer of Rio Tinto, in the statement.
"It illustrates our ability to obtain real value for our assets and follows the sales earlier this year of the Greens Creek mine in Alaska for 750 million dollars and our interest in the Cortez operation in Nevada for 1.695 billion dollars.
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"These transactions bring transparency to the value inherent in Rio Tinto's portfolio of high quality assets." A combination of BHP Billiton and Rio Tinto, the world's biggest and third-biggest miners respectively, would create a titan at a time when commodity prices are enjoying record highs because of surging demand.
However, last week, the European Commission opened an in-depth antitrust probe into mining giant BHP's hostile takeover bid over "serious doubts" the deal could stifle competition amid soaring prices for raw materials.
Europe's top antitrust watchdog said it would rule by November 2008 on whether to block the bid or allow BHP Billiton to go ahead with plans to forge an unrivalled global resources giant.
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