Rio Tinto Group (LSE:RIO) has put the sale of its titanium assets on hold as the escalating war in Iran makes it virtually impossible to sell the business to Chinese groups, the only likely buyers for the operations. The suspension comes as the mining giant presses ahead with the sale of its borates business, which is attracting interest from private equity firms including Apollo Global Management and Bain Capital, as well as chemical companies such as Orion and Koch Industries. Sources said the titanium assets, primarily located in South Africa and Madagascar - jurisdictions known for governance challenges - would ordinarily appeal to Chinese buyers seeking to secure critical mineral supplies.
However, current geopolitical tensions and heightened scrutiny of strategic asset sales to Chinese entities have effectively frozen the process. UBS and JPMorgan are advising on Rio's asset sales. The titanium business - Rio's largest non-core asset - comprises mineral sands operations including Richards Bay Minerals in South Africa, Madagascar Minerals, and the Sorel-Tracy operations in Quebec, Canada.
