20 DECEMBER 2012World Aluminium Market
Rio Tinto agrees sale of shareholding in Palabora
Edited by : AL CIRCLE
1 min read
Rio Tinto has reached a binding agreement to sell its 57.7 per cent effective interest in Palabora Mining Company Limited (Palabora) for US$373 million.
The purchaser is a consortium comprising South African and Chinese entities led by the Industrial Development Corporation of South Africa Limited and Hebei Iron & Steel Group, who are committed to the ongoing sustainable management of Palabora.
The sale is subject to customary regulatory approvals in South Africa and China which are expected to take four to six months.
Guy Elliott, chief financial officer of Rio Tinto said "Palabora is a good business but is no longer a natural fit within Rio Tinto's portfolio. Selling our stake reflects Rio Tinto's policy of continually reviewing our portfolio to generate best value for shareholders.
"I expect Palabora to continue prospering under its new ownership. During the transition we will continue to run the operations efficiently and safely."
The purchaser is a consortium comprising South African and Chinese entities led by the Industrial Development Corporation of South Africa Limited and Hebei Iron & Steel Group, who are committed to the ongoing sustainable management of Palabora.
The sale is subject to customary regulatory approvals in South Africa and China which are expected to take four to six months.
Guy Elliott, chief financial officer of Rio Tinto said "Palabora is a good business but is no longer a natural fit within Rio Tinto's portfolio. Selling our stake reflects Rio Tinto's policy of continually reviewing our portfolio to generate best value for shareholders.
"I expect Palabora to continue prospering under its new ownership. During the transition we will continue to run the operations efficiently and safely."
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