Rio Tinto to sell Brazilian iron ore operation to Vale

Friday, 30 January 2009 11:27:53 (GMT+3)   |  
       

On January 30, Australian mining giant Rio Tinto announced that it has signed definitive agreements to sell its Corumbá iron ore mine in the western Brazilian state of Mato Grosso do Sul with the associated river logistics operations in Paraguay, as well as its undeveloped potash assets in Argentina, to Brazilian mining company Vale for a total cash consideration of $1.6 billion.

The Corumbá transaction will take place after relevant approvals have been received, and completion is expected in the second half of 2009.
 
The earnings of the Corumbá iron ore mine were $6 million for the six months ending 30 June 2008 and $12 million for the year ended 31 December 2007. The gross assets of the Corumbá operations as at 30 June 2008 were $263 million. Corumbá currently has an annual capacity of 2 million mt of iron ore.

"This transaction demonstrates the depth and quality of our asset portfolio and our ability to unlock value for shareholders despite tough credit markets and economic conditions. This is a very positive step towards meeting our commitment to reduce debt by $10 billion in 2009," said Rio Tinto CFO, Guy Elliott.


Similar articles

Iron ore prices drop by over $9//mt week on week, mood remains bad

28 Mar | Scrap & Raw Materials

Goa government to ease policy for liquidating iron ore dumps lying on private land

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

Brazilian high-grade iron ore price declines sharply in two days

27 Mar | Scrap & Raw Materials

Daily iron ore prices CFR China - March 27, 2024

27 Mar | Scrap & Raw Materials

India’s JSPL takes operational charge of iron ore complex in Venezuela

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

Vale selected to begin award negotiations for US briquette plant

26 Mar | Steel News

Daily iron ore prices CFR China - March 26, 2024

26 Mar | Scrap & Raw Materials