• August 23rd, 2019
Login / Register

China to pay about N$1.5 billion for Rössing stake

WINDHOEK - Rio Tinto has entered into a binding agreement with China National Uranium Corporation Limited (CNUC) for the sale of its entire 68.62 percent stake in Rössing Uranium Limited, owners of the Rössing mine in the Erongo Region, for up to US$106.5 million (about N$1.5 billion at today’s exchange rate).  

The total consideration comprises an initial cash payment of US$6.5 million, payable at completion, and a contingent payment of up to US$100 million following completion. The contingent payment is 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. The total consideration is subject to a maximum cap of US$106.5 million. 

According to a statement by Rio Tinto, the transaction represents the culmination of an extensive assessment of strategic options considered by Rio Tinto in relation to Rössing. 

Rio Tinto’s chief executive, Jean-Sébastien Jacques, said; “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.”

“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,” Jacques stated. 

The transaction is subject to certain conditions precedent, including merger approval from the Namibian Competition Commission. Subject to these conditions being met, the transaction is expected to be completed during the first half of 2019. 

Staff Reporter
2018-11-27 09:48:41 8 months ago

Be the first to post a comment...