Global mining giant Rio Tinto will sell its entire 68.62% stake in Rössing Uranium Limited, the owner of the Rössing mine in Namibia, to the Chinese state-run uranium miner CNUC (China National Uranium Corporation, a subsidiary of CNNC) for a total consideration of US$106m. The transaction includes an initial cash payment and a contingent payment linked to uranium spot prices and Rössing operations' net income during the next seven calendar years. The transaction is subject to certain conditions precedent, including merger approval from the Namibian Competition Commission, and is expected to complete in the first half of 2019.
The Rössing mine, located in Arandis (Namibia), has been in operation since 1976 and is the world's longest-running open pit uranium mine. Its nameplate capacity currently stands at 4,500 tU308/year and its production reached 4,652,000 pounds U3O8 (1,789 tU) in 2017.
Rössing Uranium is operated by Rio Tinto, while the Namibian government has a 3% shareholding but a 51% majority in terms of voting rights. The Iranian Foreign Investment Company is a passive legacy investor with a 15% interest, while the Industrial Development Corporation of South Africa owns 10% and local individual shareholders around 3%.
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