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Palabora sales conditions deadline extended

1st July 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) - Mining majors Rio Tinto and Anglo American were granted an extension to fulfil the suspensive conditions to dispose of their respective shares in JSE-listed Palabora Mining.

Rio Tinto and Anglo American were selling their respective 57.7% and 16.8% stakes for $373-million and $103-million respectively to a consortium of South African and Chinese entities led by the Industrial Development Corporation and the Hebei Iron & Steel Group.

To allow sufficient time for the majors to meet the conditions, the parties agreed to extend the deadline from June 30 to August 31.

Rio Tinto has, to date, made “significant progress” in fulfilling the required conditions and has secured the requisite approvals of the South African exchange control authorities and all the concerned Chinese regulators.

The mining company’s sale still relied on the approval of the South African competition authorities, which the Competition Commission had tabled, and on the condition that the agreement governing Palabora’s broad-based black economic-empowerment transaction became unconditional.

Further, it was required that no material adverse change occurred between the signature date of the Rio Tinto and Anglo American sale agreement and the date that the two outstanding suspensive conditions referred to, above, are fulfilled or waived.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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