28th Sep 2018 11:28
LONDON (Alliance News) - Blue-chip miner Rio Tinto PLC on Friday announced the sale of its stake in Indonesia's Grasberg mine for USD3.5 billion.
Rio Tinto has a 40% right to production above a pre-agreed level from Grasberg and 40% of all production after 2022, and this is being sold to state mining firm PT Indonesia Asahan Aluminium.
Chief Executive Jean-Sebastian Jacques said: "This agreement is a significant step towards the sale of our interest in Grasberg and provides further evidence of our commitment to strengthening the portfolio by selling non-core assets and driving higher returns across the business.
"We will continue to shape the portfolio, maintain a strong balance sheet and allocate capital to the highest value opportunities in order to ensure that Rio Tinto continues to deliver sector leading returns to shareholders."
Shares were 0.5% lower Friday at a price of 3,856.62 pence each.
Rio Tinto has sold a number of assets recently, including its Hail Creek, Valeria, and Kestrel coal assets in Australia.
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