Rio Tinto Sheds Rössing Uranium Mine
Rio Tinto, which is streamlining its operations, sold its Rössing uranium mine interest to China National Uranium Corporation Limited for $6.5 million plus a contingent payment of up to $100 million.
Rio Tinto said the $100 million contingent payment is linked to uranium spot prices and Rössing's net income during the next seven calendar years.
Uranium has been in a prolonged price lull. Cameco's McArthur River and Key Lake were shuttered two years ago. The metal is currently trading in the mid-$20s per pound.
Four years ago Rio Tinto kicked off an efficiency and streamlining effort.
"This sale demonstrates Rio Tinto’s commitment to further simplifying and strengthening our portfolio and brings the total divestment proceeds received since 2017 to $11.2 billion, of which $9.7 billion has been returned to our shareholders," said Rio Tinto chief executive J-S Jacques in a news release.