Rio Tinto to Sell Mount Pleasant Coal Deposit for US$224 Million, Plus Royalties
January 26 2016 - 5:25PM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--Rio Tinto PLC (RIO.LN) said it has agreed to sell its
Mount Pleasant thermal-coal deposit to Australian firm MACH Energy
Australia Pty Ltd. for US$224 million, plus royalty payments on
future coal sales.
The Anglo-Australian miner said the site, in the Hunter Valley
region of Australia's New South Wales state, would be better
developed by the smaller, private company. Rio Tinto has been
trimming down its portfolio, selling off billions of dollars worth
of assets over the past few years, as Chief Executive Sam Walsh
turns his focus to its most profitable, large-scale--or so-called
tier one--mining operations.
"We believe Mount Pleasant can have a very positive future under
its new owners with different priorities for development and
capital allocation," said Jean-Sébastien Jacques, chief executive
of Rio Tinto's copper and coal business. Rio Tinto estimated the
deposit has marketable coal reserves of 474 million metric
tons.
Rio Tinto said it expects to finalize the deal in the second
quarter of the year.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
January 26, 2016 17:10 ET (22:10 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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