The sale, which will offload assets supplying approximately 30% of the global boron market, aligns with new CEO Simon Trott's strategy to simplify the group's operating model.
Australian mining major Rio Tinto is preparing to sell its extensive boron assets in California, a move that signals the company's clear focus on streamlining its portfolio under newly appointed chief executive Simon Trott. According to media reports, the Anglo-Australian firm has engaged major banks to advise on the sales process for the operations, which are valued at a significant $2 billion and are expected to draw interest from private equity firms and chemical producers.
The assets slated for divestment encompass the company’s entire U.S. boron operations, a cornerstone of global borate supply. This includes the world-leading, century-old mine and processing facilities located in the Mojave Desert town of Boron, along with a refinery and shipping facility at the Port of Los Angeles, and the Owens Lake mining operation near Sierra Nevada. Collectively, these Californian sites are a powerhouse in the market, meeting about 30% of worldwide demand for the critical element.
This strategic move follows Trott’s reorganization of the group just three months after taking the helm, dividing the company into three core product groups: iron ore, copper, and aluminium/lithium. The borates business, which historically sits within the broader minerals unit, was placed under a strategic review, reflecting Rio’s intent to concentrate resources on commodities that generate the bulk of its earnings—namely iron ore, copper, and aluminium.
The sale comes despite the strong and growing strategic importance of boron. The U.S. recently added boron to its critical minerals list, citing its key role in products essential for economic and national security, such as permanent rare earth magnets. Boron and its chemical compounds are integral to numerous industrial applications, including the manufacturing of fertilizer, specialized glass and ceramics, fiberglass insulation, and high-strength metal alloys.
The California boron mine, which Rio Tinto acquired in 1967, boasts reserves sufficient to support production through the early 2040s, making it a highly attractive, long-life asset. Rio has appointed UBS Group AG and JPMorgan Chase to advise on the sale, which is anticipated to officially kick off within the next fortnight. The divestment underscores a push towards a simpler, more focused operational structure designed to unlock greater shareholder value by concentrating capital and management talent on the largest, highest-return businesses.
