Rio Tinto (ASX, LSE: RIO) is looking to sell its boron assets in California as part of the group’s ongoing efforts to simplify its operating model, according to Bloomberg.
On Wednesday, the media outlet reported that the Australian mining major will sell all its US boron assets, which include a mine and processing operations in the Mojave Desert town named after the element. Also being sold are Rio’s refinery and shipping facility in Los Angeles port and its Owens Lake mining operation near Sierra Nevada.
Together, these California assets meet about 30% of global demand for boron, according to the company’s website.
Boron is currently used in a variety of industrial applications, including in fertilizer, glass and ceramics manufacturing, fiberglass insulation and for strengthening metal alloys. The United States, despite already establishing itself as a leading producer, recently included boron on its latest critical minerals list, citing its key role in economic and national security-related products such as permanent rare earth magnets.
$2 billion in value
Rio’s California boron mine has been active well before its acquisition in 1967. Now in its 100th year of operation, it has become a world-leading producer of borates and boron chemicals. The deposit’s reserves are sufficient to support production through the early 2040s.
A sale of the boron mine reflects Rio’s strategy to simplify its operations structure under new chief executive Simon Trott. Since taking the helm three months ago, Trott has reorganized the group into three divisions and ordered a review of the minerals unit, which includes borates. The company currently makes nearly all its earnings from iron ore, copper and aluminum.
Rio has engaged two major banks — UBS Group AG and JPMorgan Chase — to advise on the sales process, which is expected to start in the next fortnight, Bloomberg said. According to its sources. Rio’s boron assets could fetch as much as $2 billion, with private equity firms or chemical producers the likely bidders.
(With files from Bloomberg)
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Rio Tinto (ASX, LSE: RIO) is looking to sell its boron assets in California as part of the group’s ongoing efforts to simplify its operating model, according to Bloomberg.
On Wednesday, the media outlet reported that the Australian mining major will sell all its US boron assets, which include a mine and processing operations in the Mojave Desert town named after the element. Also being sold are Rio’s refinery and shipping facility in Los Angeles port and its Owens Lake mining operation near Sierra Nevada.
Together, these California assets meet about 30% of global demand for boron, according to the company’s website.
Boron is currently used in a variety of industrial applications, including in fertilizer, glass and ceramics manufacturing, fiberglass insulation and for strengthening metal alloys. The United States, despite already establishing itself as a leading producer, recently included boron on its latest critical minerals list, citing its key role in economic and national security-related products such as permanent rare earth magnets.
$2 billion in value
Rio’s California boron mine has been active well before its acquisition in 1967. Now in its 100th year of operation, it has become a world-leading producer of borates and boron chemicals. The deposit’s reserves are sufficient to support production through the early 2040s.
A sale of the boron mine reflects Rio’s strategy to simplify its operations structure under new chief executive Simon Trott. Since taking the helm three months ago, Trott has reorganized the group into three divisions and ordered a review of the minerals unit, which includes borates. The company currently makes nearly all its earnings from iron ore, copper and aluminum.
Rio has engaged two major banks — UBS Group AG and JPMorgan Chase — to advise on the sales process, which is expected to start in the next fortnight, Bloomberg said. According to its sources. Rio’s boron assets could fetch as much as $2 billion, with private equity firms or chemical producers the likely bidders.
(With files from Bloomberg)