Written by Administrator Friday, 27 November 2009 08:21
Rio Tinto, the mining giant that owns Rössing Uranium is reported to be planning to buy out Rössing South uranium deposit, which is reportedly one of the biggest uranium finds in recent years. According to a well-placed source in Australia who is close to both Rio Tinto and Extract Resources, Rio Tinto wants Rössing South so that it can expand its uranium production capacity. The source told the Economist that the only hurdle at the moment was that some of Extract shareholders are demanding more money. Jerome Mutumba, manager corporate communications and external relations at Rössing Uranium told the Economist this week that Rio Tinto has acquired on behalf of Rössing,
14.7% interest in Extract Resources Ltd, the company which owns the Rössing South deposit, and 14.1% of Kalahari Minerals which owns 40% of Extract Resources. “Rio Tinto and Rössing see great potential for Rössing South to be developed and operated together with Rössing as this will provide value to both Rössing and Extract Resources. Rössing South is only seven kilometres from the Rössing pit, and the mines could share significant infrastructure. Hence we see potential for Rössing South and Rössing working together on a joint development as this will provide value to both Rössing and Extract Resources. A significant investment will be required dependent upon the nature of the joint development,” Mutumba said. He said Rössing Uranium remain interested in discussing with the board of Extract how it might maximise value for all shareholders in both Extract and our Rössing mine. “Rössing produces 8% of global primary uranium production and is already a world class mine. Rössing South has the potential to be a similar scale,” Mutumba said.
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