Global mining group Rio Tinto said it has received a binding offer from Liberty House to acquire the Aluminium Dunkerque smelter in northern France for $500 million, subject to final adjustments.
“In accordance with French law, Rio Tinto will launch a consultation process with employees, relevant European works councils and other stakeholders in relation to the bid,” the company said in a statement.
Rio Tinto expects to complete the sale in the second quarter of 2018.
The proposal received from Liberty House, which acquired Rio Tinto’s Lochaber Smelter and assets in Scotland in December 2016, includes plans for the modernisation of the site, the statement said.
“The binding offer for the sale of Aluminium Dunkerque represents the best option for the future development of the site while also delivering value for Rio Tinto as we continue to streamline our portfolio,” Rio Tinto Aluminium chief executive Alf Barrios said.