China Molybdenum to Buy Rio’s Stake in Northparkes Copper Mine

Reuters reported that China Molybdenum Company Ltd. (HKEX:3993), China’s largest molybdenum producer, will buy Rio Tinto plc’s (ASX:RIO,LSE:RIO,NYSE:RIO) majority stake in the Australia-based Northparkes copper mine for $820 million. This is the company’s first advance into copper.

As quoted in the market news:

The purchase marks the biggest Chinese mining deal since China Guangdong Nuclear Power Corp won control of the Husab uranium project in Namibia for about $2.3 billion last year, as Beijing turned cautious on approving overseas acquisitions after splashing billions of dollars on iron ore projects in Australia that have yet to generate returns.

The stake in Northparkes is one of several assets Rio has put up for sale as it aims to slash $5 billion in costs, pare debt and focus on its biggest, most profitable mines. It is also trying to sell a minority stake in Coal & Allied in Australia and its majority hold in Iron Ore Company of Canada.

Click here to read the full Reuters report.