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Rio Tinto agrees sale of interest in Northparkes

Released 07:00 29-Jul-2013

RNS Number : 3116K
Rio Tinto PLC
29 July 2013
Rio Tinto plc
2 Eastbourne Terrace
London W2 6LG
United Kingdom
T +44 (0) 20 7781 2000

F +44 (0) 20 7781 1800


Media release


Rio Tinto agrees sale of interest in Northparkes


29 July 2013


Rio Tinto has reached a binding agreement for the sale of its 80 per cent interest in Northparkes to China Molybdenum Co., Ltd. (CMOC) for US$820 million.


Rio Tinto chief financial officer Chris Lynch said "The sale of Northparkes represents great value for our shareholders and demonstrates our continued focus and discipline in the way we allocate capital across the Group.


"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.  Rio Tinto will continue to manage Northparkes to the highest safety and environmental standards during the transition to the new owner.


"The agreed sale of Northparkes follows our recently completed divestment of the Eagle nickel project in the United States while the Palabora sale is now unconditional and expected to close on 31 July.  As always, any decision to sell is driven by our focus on delivering the best value for our shareholders."


The sale is subject to Rio Tinto's joint venture partners, Sumitomo Metal Mining and Sumitomo Corporation Mineral Resources, waiving or failing to exercise their pre-emption rights under the terms of the Northparkes Joint Venture Agreement.


The sale is also conditional upon customary regulatory approvals, and the approval of CMOC shareholders. Rio Tinto has received binding commitments from the two major CMOC shareholders holding 69 per cent of CMOC shares to support the transaction, which is sufficient for the relevant shareholder resolutions to be passed.


The transaction is expected to close by the end of 2013.

About Rio Tinto


Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and New York Stock Exchange listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.


Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals (borax, titanium dioxide and salt) and iron ore. Activities span the world and are strongly represented in Australia and North America with significant businesses in Asia, Europe, Africa and South America.


About China Molybdenum Co., Ltd


China Molybdenum Co., Ltd. ("CMOC") is primarily engaged in the mining and processing, smelting, downstream processing, trade, research and development of molybdenum, tungsten and precious metals. It is the world's fourth largest molybdenum and second largest tungsten concentrate producer in the world, and an emerging precious metals producer in China. CMOC's core asset, the wholly-owned Sandaozhuang molybdenum-tungsten mine located in Luoyang China, is one of the largest defined molybdenum reserves and second largest defined tungsten reserves in the world. CMOC is dual-listed on the Hong Kong Stock Exchange (HK3993) and the Shanghai Stock Exchange (SH603993).

For further information, please contact:

Media Relations, EMEA / Americas

Illtud Harri

Office: +44 (0) 20 7781 1152

Mobile: +44 (0) 7920 503 600

David Outhwaite

Office: +44 (0) 20 7781 1623

Mobile: +44 (0) 7787 597 493

Christina Mills

Office:  +44 (0) 20 7781 1154

Mobile: +44 (0) 7825 275 605

Investor Relations, London

Mark Shannon

Office:  +44 (0) 20 7781 1178

Mobile: +44 (0) 7917 576597

David Ovington

Office:  +44 (0) 20 7781 2051

Mobile: +44 (0) 7920 010 978


Media Relations, Australia / Asia

David Luff
Office:  +61 (0) 3 9283 3620
Mobile: +61 (0) 419 850 205

Bruce Tobin

Office: +61 (0) 3 9283 3612

Mobile: +61 (0) 419 103 454

Investor Relations, Australia

Christopher Maitland

Office: +61 (0) 3 9283 3063

Mobile: +61 (0) 459 800 131

Rachel Storrs

Office: +61 (0) 3 9283 3628

Mobile: +61 (0) 417 401 018

Media Relations, Canada

Bryan Tucker

Office: +1 (0) 514 848 8151

Mobile: +1 (0) 514 825 8319

Investor Relations, North America

Jason Combes

Office:  +1 (0) 801 204 2919

Mobile: +1 (0) 801 558 2645





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Rio Tinto agrees sale of interest in Northparkes - RNS