Wedoany.com Report-Nov. 27, Rio Tinto has decided to divest its entire portfolio of boron assets in California as part of a broader initiative to streamline its global operations.

The assets include the Boron mine and processing plant located in the Mojave Desert town of Boron, a refinery and shipping terminal at the Port of Los Angeles, and the Owens Lake mining operation near the Sierra Nevada. These facilities collectively supply approximately 30 percent of global boron demand.

The Boron mine, which has been in continuous production for a century and was acquired by Rio Tinto in 1967, remains one of the world's leading sources of borates and refined boron products. Proven reserves are sufficient to sustain operations into the early 2040s.

Boron is widely used in fertilizers, glass and ceramics production, fiberglass insulation, and metal alloy strengthening. The United States recently designated boron as a critical mineral due to its importance in applications linked to economic and security priorities, including permanent rare-earth magnets.

The planned sale aligns with Rio Tinto's strategy under Chief Executive Simon Trott, who took office three months ago and restructured the group into three core divisions while initiating a comprehensive review of the minerals portfolio. The company currently derives the majority of its earnings from iron ore, copper, and aluminium.

Rio Tinto has appointed UBS Group AG and JPMorgan Chase as financial advisers for the divestment process, which is expected to commence within the next two weeks. Market sources indicate the California boron assets could attract bids of up to $2 billion, with potential interest from private equity investors and chemical industry participants.

The transaction reflects ongoing efforts to focus resources on core commodities while maintaining disciplined capital allocation across the group's operations.