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11/26/2018, 8:13 AM (Source: TeleTrader)
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Rio Tinto sells uranium shares to Chinese state corporation

Rio Tinto Group announced on Monday it is selling its uranium stake in Roessing Uranium Limited to China National Uranium Corporation Limited (CNUC) for up to $106.5 million. The mining giant agreed to sell the entirety of its Namibia mine Roessing Uranium stake (68.62%) for an initial pay of $6.5 million and a contingent payment of up to $100 million after the completion. Rio Tinto said the agreement comes as a result of weighing its strategic options related to Roessing.

"Rio Tinto has a long history in Namibia and I would like to thank the many people across Rio Tinto and the communities in which we operate who have contributed to the success of Roessing. I wish them continued success under new ownership. Rio Tinto will work closely with CNUC to ensure a smooth transition and ongoing sustainable operation at Roessing," Rio Tinto chief executive officer Jean-Sebastien Jacques commented.

The agreement remains subject to additional regulatory approval, including a green light from the Namibian Competition Commission. The transaction is expected to be completed through the first half of 2019.

Breaking the News / SS