Molybdenum Co. Ltd. has agreed to buy Rio Tinto Plcs
80-percent stake in the Northparkes copper and gold mine in New
South Wales, Australia, for $820 million as it expands its
business beyond steelmaking raw materials.
Earlier this year, Rio
Tinto chief executive officer Sam Walsh highlighted the need to
cut costs and create significant cash proceeds from divestments
of non-core businesses in 2013. London-based Rio Tinto has
already sold its Eagle nickel and copper mine in Michigan for
$315 million (
amm.com, July 17), and is selling its stake in
Palabora Mining Co.s copper mine in South Africa for $446
The sale of
Northparkes is subject to approval from Rio Tintos
joint-venture partners, Sumitomo Metal Mining Co. Ltd. and
Sumitomo Corp. Mineral Resource.
Molybdenums wholly owned Sandaozhuang molybdenum-tungsten
mine in Luoyang, China, is one of the largest defined
molybdenum reserves and the second-largest defined tungsten
reserve in the world.