25th Oct 2013 10:35
LONDON (Alliance News) - Rio Tinto PLC Friday said that it has agreed to sell its majority stake in the Clermont thermal coal mine in Queensland to a subsidiary of fellow mining giant Glencore Xstrata, for USD1.02 billion.
Rio Tinto currently holds a 50.1% stake in the Clermont joint venture, and will sell it to GS Coal Pty Limited, a company jointly owned by Glencore Xstrata and Sumitomo Corporation. The deal is expected to close in the first quarter of 2014, Rio Tinto said, and Glencore Xstrata will takeover management the mine.
Rio Tinto's joint venture partners in Clermont Mine are Mitsubishi Development Pty Limited, J-Power Australia Pty Limited and J.C.D. Australia Pty Limited. They need to approve the deal.
"The sale of Clermont Mine will allow us to realise value for our shareholders as we continue optimising our portfolio. Rio Tinto remains committed to a long-term future in central Queensland. Production has recently commenced from the USD2 billion extension of the Kestrel Mine and studies are currently underway to extend production from the Hail Creek Mine," said Rio Tinto's Chief Financial Officer Chris Lynch in a statement.
Rio Tinto said that with the agreed sale of the Clermont Mine, it has now announced or completed USD2.91 billion worth of divestments this year, including a binding agreement for the sale of its interest in Northparkes and the recently completed sales of Palabora and Eagle.
Rio Tinto shares were down 0.2% at 3,228.50 pence Friday morning, while Glencore Xstrata shares were up 0.5% at 341.85 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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