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RioZim in Talks to Buy Murowa Mine
May 28, 2012 7:23 AM
By Avi Krawitz
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RAPAPORT... Zimbabwe's RioZim Limited has begun talks with Rio Tinto to buy the mining giant’s stake in the Murowa diamond mine, Reuters reported.
Rio Tinto owns a 78 percent stake in Murowa while RioZim owns the remaining 22 percent. The talks follow a decision by Rio Tinto to divest from its diamond business, which includes the Argyle mine in Australia and a 60 percent stake in the Diavik mine in Canada.
RioZim is keen to exercise its preemptive rights to acquire Rio Tinto's shares in Murowa, Reuters quoted Harpal Randhawa, whose private equity group Global Emerging Markets recently bought 25 percent of RioZim, as saying at an investment conference in Harare.
"We're now in discussions with Rio Tinto to acquire the 78 percent of Murowa that they want to offload," Randhawa said.
He noted that the firm was compliant with Zimbabwe's empowerment law as it was 54 percent controlled by locals.
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Tags:
Avi Krawitz, diamonds, Murowa, Rio Tinto, RioZim, Zimbabwe
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