Make Kitco Your Homepage

Rio Tinto Sheds Rössing Uranium Mine

Kitco News

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News