27th Jan 2016 05:31
LONDON (Alliance News) - Rio Tinto PLC on Wednesday said that it has reached a binding agreement to sell its Mount Pleasant thermal coal assets to MACH Energy Australia Pty Ltd for USD224 million plus royalties.
With the recently announced binding agreement for the sale of Rio Tinto's interest in the neighbouring Bengalla coal joint venture, this amounts to USD830 million of agreed sales.
Rio Tinto Copper & Coal chief executive Jean-Sébastien Jacques said "These agreements for over USD800 million in asset sales deliver significant value for our shareholders, with the potential for future royalties from Mount Pleasant."
Mount Pleasant is a large-scale, thermal coal asset in the Hunter Valley of New South Wales with total marketable reserves of 474 million tonnes.
The sale is subject to certain conditions precedent being met, including completion of the restructure of Coal & Allied and regulatory approvals, and is expected to close in the second quarter of 2016.
Rio Tinto recently reached a binding agreement for the sale of Coal & Allied's 40% interest in the Bengalla coal Joint Venture in Australia to New Hope Corporation Limited for USD606 million.
Copyright RTT News/dpa-AFX
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