Rio and Anglo lose interest in Palabora

5th Sep 2011 07:21

FTSE 100 mining giants Rio Tinto and Anglo American have announced that they are to offload their respective interests in South Africa-focused copper miner Palabora Mining Company. Rio currently holds a 57.7% stake in Palabora, while Anglo owns a 16.8% interest. "Rio Tinto is no longer the natural owner of Palabora due to the limited opportunity to significantly expand copper mining. We believe Palabora has a solid future under an owner who can develop the magnetite business alongside the existing copper and vermiculite operations," said Rio Tinto Copper's chief executive, Andrew Harding.While studies are underway to potentially extend the mine life of Palabora's principal asset from 2016 to 2030, Rio said it is "no longer of sufficient scale to fit with Rio Tinto's strategy." Anglo said the same."Palabora owns a magnetite stockpile and the future value creation at Palabora is likely to involve the on-site processing and beneficiation of magnetite, an opportunity that Anglo American believes will be best developed under new ownership," a statement said.BC