Feb 5 2009
Rio Tinto has completed the sale of its undeveloped potash assets to Vale, the Brazilian mining company, for a cash consideration of US$850 million. The transaction is comprised of the Potasio Rio Colorado potash project in Argentina and the Regina exploration assets in Canada. The proceeds from this divestment will be used for the repayment of debt.
The potash divestment, which was announced on 30 January 2009, was part of a larger transaction that included the Corumbá iron ore mine in Brazil and the associated river logistics operations in Paraguay. The Corumbá transaction will complete when appropriate consents are received, and completion is expected in the second half of 2009. The total consideration for the Corumbá assets is US$750 million.
In December 2008, Rio Tinto announced a detailed package of measures in response to the rapidity and severity of the global economic downturn. One aspect of those measures included expanding the scope of the Group's existing asset divestment programme.
During 2008, Rio Tinto realised almost US$3 billion from asset sales, comprising the Greens Creek mine in Alaska for US$750 million, its interest in the Cortez operation in Nevada for US$1.695 billion and the Kintyre uranium project in Western Australia for US$495 million. In January 2009, the Group announced the divestment of its interest in the Ningxia aluminum smelter in China for US$125 million.