Rio Tinto (RTP-N) has agreed to buy the Three Springs talc mine and processing plant in Western Australia from Australian-based WMC (WMC-N) for US$27.8 million.
The all-cash deal is subject to regulatory approval. It should wrap up by the end of the year.
The mine, 330 km north of Perth, has a capacity of 200,000 tonnes talc annually. The mill’s annual capacity is 40,000 tonnes. The operation will be managed by Rio’s wholly owned subsidiary Luzenac.
Rio plans to focus to develop fine talcs for the paper and paint industry in the Asia Pacific region.
The company produces about 1.3 million tonnes talc annually from mines in Austria, Belgium, UK, Italy, Spain, Canada, Mexico and the U.S.A. The company also owns the world’s largest talc mine, which is in France.
In the boardroom, Gary Pemberton plans to retire from his position of non-executive director at the end of August. Pemberton became a Rio director of in 1996.
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