JOHANNESBURG (miningweekly.com) – Mining major Rio Tinto has reached an agreement to sell its assets at Lochaber, Scotland, to multifaceted commodity group Simec for $410-million.
The company said in a statement on Wednesday that the agreement includes a payment on completion of £180-million, plus an additional payment of £150-million by no later than February 28, 2017.
Rio Tinto will sell its 100% shareholding in Alcan Aluminium UK, which includes the operating smelter, the hydroelectric facilities at Kinlochleven and Lochaber, in Scotland, as well as all associated land.
"This is a value-creating sale for Rio Tinto and represents another example of refining our portfolio to focus on our suite of tier one assets,” said Rio Tinto aluminium CEO Alf Barrios.
Simec’s intention is that the smelter will be operated by the Liberty House Group, its sister company within the international GFG Alliance.
"The sale of both the smelter and hydropower station increases the chance of the site having a viable, long-term future,” noted Scotland's Cabinet Secretary for Rural Economy and Connectivity, Fergus Ewing, adding that the transaction would safeguard 150 jobs and had the potential to create hundreds more.
The sale is subject to certain conditions precedent and consultation with employees. It is expected to close mid-December 2016.
Rio Tinto has agreed more than $1.3-billion in divestments this year, bringing the total value of divestments announced or completed to $5.3-billion since January 2013.