Rio Tinto’s, U.S. assets that produce the critical mineral boron have drawn interest from more than a dozen potential bidders and could be valued as much as $2 billion, Bloomberg News reported on Friday, citing sources.
WE Soda, Magris Resources and U.S. Silica Holdings are among the firms interested in buying Rio’s boron assets in California and are expected to extend binding offers to Rio Tinto by June, according to the report.
Magris Resources declined to comment, Rio and the other two bidders did not immediately respond to Reuters’ request for comment.
The mineral boron is used in nuclear energy, wind turbines, specialty glass, ceramics, advanced insulation, fertilizers, cleaning chemicals and as an additive in oil and gas drilling.
Last year, boron was added to the U.S. critical minerals list by the U.S. Geological Survey and the Interior Department, reflecting concerns over supply risks, limited substitutes and heavy concentration of production outside the U.S.
The potential move to offload the asset comes after Simon Trott, the Anglo-Australian miner’s CEO, outlined a plan in 2025 to generate $5 billion to $10 billion through divestments and productivity growth, in a move to simplify the structure of the world’s largest iron ore miner.
Source: Reuters.com