Rio Tinto agrees to sell Namibian uranium mine to China

Rio Tinto has struck a deal to sell its majority stake in the Rössing mine in Namibia to China's state nuclear company.

China National Uranium Corporation will pay the world’s second largest miner up to $106.5m for its entire 68.62% stake, with an initial cash payment of $6.5m on completion and the rest dependent on uranium spot prices over the coming seven years.

Rössing, the world's longest-running open pit uranium mine, currently generates roughly 3% of global supply for the radioactive metal, for which rising investor demand has drivn prices up more than 30% in the past four months.

The FTSE 100-listed company has been in talks with CNNC as it considered several strategic options for Rössing, which last year produced 4,652 klbs in total, of which Rio's share was 3,192 klbs.

Rio chief executive Jean-Sebastien Jacques said the sale was part of the board's efforts to strengthen the portfolio by focusing on "core assets, which deliver sector leading returns in the short, medium and long term".