Rio Tinto offloads NSW copper/gold mine to Chinese firm
PERTH (miningweekly.com) – Mining giant Rio Tinto on Monday announced that it would sell its 80% shareholding in the Northparkes copper/gold mine, in New South Wales, for $820-million to China Molybdenum.
CFO Chris Lynch said the sale of its Northparkes interest represented “great value” for the group’s shareholders and was in line with its focus on capital allocation.
“Northparkes is a successful business but is not of sufficient size to be a good fit with our strategy. We believe it will have a strong future under its new ownership,” said Lynch.
The agreed sale of the Northparkes asset follows the recent completed divestment of the Eagle nickel project, in the US, while the Palabora sale, in South Africa, is now unconditional and expected to close at the end of July.
The Northparkes mine has been operational since 2004, and covers some 10 314 ha of land, with the mining lease covering 1 630 ha. The operation consists of underground block cave mines and an ore processing plant producing high-grade copper and gold concentrate, which is railed to Port Kembla and shipped to smelters in Japan and China.
Rio said that the sales agreement was conditional on regulatory approval and shareholder approval, and would likely be completed by the end of 2013.
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