Rio Tinto Sells Australian Coal Asset for $606 Million
September 29 2015 - 9:30PM
Dow Jones News
SYDNEY—Rio Tinto PLC has agreed to sell its stake in a large
Australian coal mine for US$606 million and overhaul the ownership
structure of its Coal & Allied unit, amid a global slump in
prices of the commodity.
On Wednesday, Rio Tinto said it has agreed to a binding deal to
sell its 40% stake in the Bengalla coal mine in eastern Australia's
New South Wales state to New Hope Corp. It expects the sale of the
mine, which produced 8.6 million metric tons of coal last year, to
close in the first quarter of 2016.
"This sale will deliver value for our shareholders as we remain
focused on continuing to develop the strongest core portfolio of
assets in the mining industry," said Jean-Sé bastien Jacques, chief
executive of Rio Tinto's copper and coal division. "It demonstrates
our commitment to further strengthening our balance sheet,
maintaining a disciplined approach to allocating capital across the
Group, and delivering strong returns for shareholders through the
cycle."
Rio Tinto also said it has taken full control of its Coal &
Allied unit, which operates mines in the Hunter Valley region of
New South Wales, from Japanese trading house Mitsubishi Corp.
Mitsubishi will effectively swap its 20% stake in Coal &
Allied for a direct 32.4% stake in the Hunter Valley Operations
mine, Rio Tinto said in a statement.
Write to David Winning at david.winning@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 29, 2015 21:15 ET (01:15 GMT)
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