SINGAPORE China 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 million.
The sale of Northparkes is subject to approval from Rio Tintos joint-venture partners, Sumitomo Metal Mining Co. Ltd. and Sumitomo Corp. Mineral Resource.
China 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.