TOP NEWS: Rio Tinto Exits Australian Coal After Kestrel Mine Sale

27th Mar 2018 14:35

LONDON (Alliance News) - Blue-chip miner Rio Tinto PLC said Tuesday it has agreed to sell its stake in the Kestrel coal mine in Australia, completing its exit from the country's coal industry.

Rio Tinto has signed a binding agreement with a consortium made up of private equity manager EMR Capital and Indonesian coal company PT Adaro Energy Tbk to sell its 80% interest for USD2.25 billion.

It expects the sale to be completed in the second half of 2018.

The Kestrel underground mine is located in the Bowen basin, 40 kilometres north-east of Emerald in central Queensland.

Chief Executive Jean-Sebastian Jacques commented: "The sale of Kestrel, together with the announced divestments of Hail Creek and our undeveloped coal projects, delivers exceptional value to our shareholders and will leave our portfolio stronger and more focused on delivering the highest returns through targeted allocation of capital."

Rio Tinto on Tuesday last week sold its 82% interest in the Hail Creek coal mine and its 71% stake in the Valeria coal resource, both in Queensland, for USD1.7 billion to FTSE 100 peer Glencore PLC.

On the Thursday Rio Tinto then agreed to sell its 75% stake in Queensland's Winchester South mine for USD200.0 million.

The sales, including Kestrel, takes Rio Tinto's recent takings from coal asset sales to USD4.15 billion.

Rio Tinto shares were up 3.0% on Tuesday afternoon at 3,641.00 pence each.

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