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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (44542)	10/6/2009 12:57:44 PM
From: LoneClone	Read Replies (1) \| Respond to of 194619

Rio sells stake in Ghanaian Bauxite mine The diversified miner is selling the 80% stake to Chinese minerals group Bosai Posted: Tuesday , 06 Oct 2009 ACCRA (Reuters) - mineweb.com Rio Tinto (RIO.L: Quote)(RIO.AX: Quote) is selling its 80% stake in Ghana's only bauxite mine to Chinese minerals group Bosai, Rio said on Monday. The London- and Sydney-listed firm has shelved an earlier plan to develop an integrated alumina refinery which would have been fed by the Awaso mine, as a result of poor local infrastructure and lower global demand for minerals. "Apart from the prevailing unfavourable market conditions, the infrastructure is not ready yet for that programme ... the cost of power and the supply system has to improve," Rio spokesman Stefano Bertolli said. The mine in the West African country produced 637,000 tonnes of the aluminium raw material, according to the firm's website. The sale to Bosai, which produces alumina and aluminium in China, will be complete by the end of the year and is subject to approval by Ghana's parliament, Bertolli said. "After careful consideration of various options, accelerated by a period of very tough economic market conditions, we decided to pursue sale of our share in GBC," he said, declining to identify the value of the sale. By contrast to Awaso, Rio Tinto last year received 45 percent of output from the Sangaredi bauxite mine in nearby Guinea, amounting to almost 6 million tonnes. Ghana's main mineral export is gold, of which it is Africa's second biggest producer. (Reporting by Kwasi Kpodo; Editing by Daniel Magnowski and Jim Marshall)