Rio Tinto and Anglo American to sell stake in Palabora Mining

7 September 2011 (Last Updated September 7th, 2011 18:30)

Rio Tinto and Anglo American are planning to sell their stakes in Palabora Mining Company Limited and have initiated a commercial process to sell its shareholding. Anglo American currently holds a 16.8% interest in Palabora Mining, while Rio Tinto holds a 57.7% interest. Palabora

Rio Tinto and Anglo American are planning to sell their stakes in Palabora Mining Company Limited and have initiated a commercial process to sell its shareholding.

Anglo American currently holds a 16.8% interest in Palabora Mining, while Rio Tinto holds a 57.7% interest.

Palabora Mining's assets include a copper mine in South Africa, with a mine life until 2016 and a magnetite stockpile.

Rio Tinto Copper CEO Andrew Harding said that the firm 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," Harding said.