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Rio gives BHP option to sell South African JV 
 
A RESTRUCTURE at a South African titanium joint venture will see Rio Tinto give JV partner BHP Billiton the option to sell its stake in the operation.

Rio has granted BHP a put option over BHP’s interest in the Richards Bay Minerals (RBM) titanium oxide mine, where the mining majors are in equal JV.

The development gives BHP the option to sell its share of the operation to Rio Tinto, should it decide to do so at a later date.

On Wednesday Rio announced plans to cut thousands of jobs and sell off assets.

The option granting over RBM is part of a larger operational restructure that will give a South African black economic empowerment group a 26% stake in RBM.

After the restructure Rio and BHP will each hold a 37% interest in the titanium joint venture.

In a separate development at RBM, Rio and BHP have reached an agreement over arbitration proceedings. Rio has agreed to pay BHP a sum of its future RBM sales commissions.

BHP shares dropped 5.5% to $28.55 while Rio stocks slid 9.2% to $36.33.