Loading ...Rio Tinto exits PNG, gives away copper-gold mine with $51bn in reserves
Mining giant Rio Tinto (LON, ASX:RIO) has given away a 54% stake in a Papua New Guinean copper and gold mine, which has reserves estimated to be worth $51 billion.
The decision to hand back the shares in its subsidiary Bougainville Copper Limited (ASX:BOC) to an independent trustee, follows a company review of the asset that was triggered by the Bouganville government’s pressure to restart mining at Panguna or give it up.
“Our review looked at a broad range of options and by distributing our shares in this way we aim to provide landowners, those closest to the mine, and the people of Bouganville a greater say in the future of Panguna,” Chris Salisbury, Rio’s copper and coal chief executive said in a statement.
The trustee, noted Rio, will manage the distribution of its shares between the autonomous Bouganville government and the PNG government, providing them with a platform to work together on options for the resource.
cont. http://www.mining.com/rio-tinto-donates-stake-in-png-copper-gold-mine-with-51bn-in-reserves/