According to informed sources, Rio Tinto PLC (RIO.US) is exploring the divestment of its boron assets in the United States. Boron, a critical mineral, has diverse industrial applications ranging from fertilizers to glass manufacturing.
The Anglo-Australian mining giant is expected to initiate the sale process for its California-based assets within the next two weeks. Potential buyers may include private equity firms or chemical producers. One source indicated that the boron assets could fetch up to $2 billion.
The operations include a mine and processing facility in Boron, Mojave Desert; a refinery and shipping terminal at the Port of Los Angeles; and Owens Lake mining operations near the Sierra Nevada. Rio Tinto's California facilities supply approximately 30% of global boron demand, as stated on its official website.
Boron is widely used in fertilizers, glass and ceramics, fiberglass insulation, and metal alloy strengthening. It also plays a vital role in stabilizing rare-earth permanent magnets for motors, generators, and electronics.
The U.S. and Turkey dominate global boron production, with U.S. output entirely concentrated in California. Earlier this month, the U.S. Geological Survey added boron to its critical minerals list.
Under new CEO Simon Trott, Rio Tinto is streamlining operations to focus on core assets like iron ore, copper, and aluminum. Trott, who took charge three months ago, restructured the company into three divisions and initiated a review of its minerals business, including borates.
UBS Group and JPMorgan are advising on the sale. Representatives from both banks declined to comment, and a Rio Tinto spokesperson also refrained from remarks.
The divestment coincides with efforts by the U.S. government to bolster domestic supply chains for minerals deemed vital to economic and national security.
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