Reuters: Deals: Rio Tinto accepts Chinese offer for Extract stake

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Rio Tinto accepts Chinese offer for Extract stake Mar 19th 2012, 21:09 LONDON | Mon Mar 19, 2012 5:09pm EDT LONDON (Reuters) - Global miner Rio Tinto (RIO.L) has accepted China Guangdong Nuclear Power's (CGNPC) offer for its 14 percent stake in Extract Resources (EXT.AX), owner of the giant Husab uranium project in Namibia. Monday's move had been expected after Rio accepted CGNPC's bid for its separately held stake in Extract's 42 percent shareholder, Kalahari Minerals, in January. Australian-listed Extract's board backed the $2.4 billion Chinese offer earlier this month. The bid, worth A$8.65 per share, valued Rio's Extract stake at roughly $330 million. Husab is potentially the second-largest uranium mine in the world, and Rio Tinto has been in talks with Extract to combine its neighboring Rossing mine, the world's longest-running open pit uranium mine, with Husab. "Rossing remains interested in pursuing a joint development with the new owners of Husab," its managing director, Chris Salisbury, said. "A joint development of the Husab deposit with Rossing would bring benefits to the shareholders of both Rossing and Husab, the local community and Namibia." CGNPC, which has bid alongside the China-Africa Development Fund, is hoping to boost access to uranium supplies. ($1 = A$0.9427) (Reporting by Clara Ferreira-Marques; Editing by Dan Lalor) Link this Share this Digg this Email Reprints

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