Rio Tinto completes sale of stake in RAlssing Uranium

Rio Tinto has completed the sale of its entire interest in the Arandis-based RAlssing uranium mine to China National Uranium Corporation Limited (CNUC).

The sale consists of an initial cash payment of N.dollars 6.5 million plus a contingent payment of up to N.dollars 100 million, according to a media release issued by Rio Tinto on Tuesday.

The N.dollars 100 million contingent payment is linked to uranium spot prices and RAlssing'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-Sebastien 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 N.dollars 11.2 billion, of which N.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 RAlssing 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 RAlssing 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.

Source: Namibia Press Agency