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(Add Magris declined to comment in paragraph 3)
American assets of Rio Tinto
RIO.AX
RIO.L
that produce the essential mineral boron have attracted the interest of more than a dozen potential bidders and could be valued up to $2 billion, Bloomberg News reported on Friday, citing sources.
WE Soda, Magris Resources, and U.S. Silica Holdings are among the companies interested in purchasing Rio’s boron assets in California and are expected to make firm offers to Rio Tinto by June, according to the report.
Magris Resources declined to comment, while 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. list of critical minerals by the U.S. Geological Survey and the Department of the Interior, due to supply risks, limited substitute products, and the high concentration of production outside the U.S.
The potential decision to divest this asset comes after Simon Trott, the CEO of the Anglo-Australian mining company, presented a plan to generate between $5 and $10 billion by 2025 through divestments and increased productivity, aimed at simplifying the structure of the world’s largest iron ore mining company.
