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Rio Tinto has signed an agreement to sell the Kintyre
uranium project located in Western Australia to a joint venture
consortium comprising subsidiaries of Cameco Corporation and
Mitsubishi Development Pty Ltd for US$495m.
Guy Elliott, chief financial officer of Rio Tinto, said, “This sale
brings us closer to achieving our asset sales target of US$10bn in
2008, and is the third under a planned programme to divest at least
US$15bn of assets in total.
“It illustrates our ability to obtain real value for our assets and
follows the sales earlier this ear of the Greens Creek mine in
Alaska for US$750m and our interest in the Cortez operation in
Nevada for US$1.695bn.
“These transactions bring transparency to the value inherent in Rio
Tinto's portfolio of high quality assets."
The transaction is expected to close in August 2008, subject to the
satisfaction of customary conditions and certain agreements with the
Martu People, the traditional owners. There is no financing
condition.
In November 2007, Rio Tinto announced the results of its overall
strategic review of the Group’s asset portfolio following its
acquisition of Alcan. Options are being explored to divest Rio Tinto
Energy America (coal), Rio Tinto Minerals talc and borates
businesses, Rio Tinto Alcan Packaging, Rio Tinto Alcan Engineered
Products, Rio Tinto’s interest in the Northparkes copper mine in
Australia and Rio Tinto’s Sweetwater uranium assets in the USA.
About the Kintyre Project
Kintyre is located in the East Pilbara region of Western Australia,
approximately 270km north-east of Newman and 90km south of Telfer,
on the south-west margin of the Great Sandy Desert. The Kintyre
tenements comprise four granted Mining Leases, four Mining Lease
Applications, a Miscellaneous Licence and 12 Prospecting Licences,
which together cover a total area of approximately 52km2.
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