Rio Tinto Knock KnockRio Tinto said to be eying Rössing South
Written by Administrator
Friday, 27 November 2009 08:21
RioTinto, the mining giant that owns Rössing Uranium is reported to beplanning to buy out Rössing South uranium deposit, which is reportedlyone of the biggest uranium finds in recent years. According to awell-placed source in Australia who is close to both Rio Tinto andExtract Resources, Rio Tinto wants Rössing South so that it can expandits uranium production capacity. The source told the Economist that theonly hurdle at the moment was that some of Extract shareholders aredemanding more money.
Jerome Mutumba, manager corporatecommunications and external relations at Rössing Uranium told theEconomist this week that Rio Tinto has acquired on behalf of Rössing,
14.7%interest in Extract Resources Ltd, the company which owns the RössingSouth deposit, and 14.1% of Kalahari Minerals which owns 40% of ExtractResources.
“Rio Tinto and Rössing see great potential for RössingSouth to be developed and operated together with Rössing as this willprovide value to both Rössing and Extract Resources.
Rössing Southis only seven kilometres from the Rössing pit, and the mines couldshare significant infrastructure. Hence we see potential for RössingSouth and Rössing working together on a joint development as this willprovide value to both Rössing and Extract Resources.
A significant investment will be required dependent upon the nature of the joint development,” Mutumba said.
Hesaid Rössing Uranium remain interested in discussing with the board ofExtract how it might maximise value for all shareholders in bothExtract and our Rössing mine.
“Rössing produces 8% of global primary uranium production and is already a world class
mine. Rössing South has the potential to be a similar scale,” Mutumba said.
https://www.economist.com.na/index.php?option=com_content&view=article&id=20541:rio-tinto-said-to-be-eying-roessing-south&catid=542:headlines&Itemid=62