Mining giant Rio Tinto has announced its intention to sell its shareholding in South Africa’s Palabora Mining.
Rio Tinto currently holds a 57.7 per cent share in Palabora, whose primary asset is a copper mine in the Ba-Phalaborwa area of Limpopo, South Africa.
The mine has a current mine life until early 2016, and studies are underway for a potential extension to 2030.
Rio Tinto said the mine is no longer of sufficient scale to fit with its strategy. Palabora also owns a magnetite stockpile, with the future of value creation likely to involve beneficiation of the magnetite through on-site processing—an activity that Rio Tinto has said lies outside its strategic focus.
Commenting, Rio Tinto Copper chief executive Andrew Harding said: "Rio Tinto is no longer the natural owner of Palabora due to the limited opportunity to significantly expand copper mining. We believe Palabora has a solid future under an owner who can develop the magnetite business alongside the existing copper and vermiculite operations.
"In the meantime Rio Tinto will continue to focus on running the operations efficiently and safely. We will continue engaging with employees, the South African Government and other stakeholders as the sale process develops and to ensure a smooth transition to a new owner.”
Headquartered in the UK, Rio Tinto is a leading international mining group whose major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals (borax, titanium dioxide and salt) and iron ore.
The company’s activities are strongly represented in Australia and North America with significant businesses in Asia, Europe, Africa and South America.
