TOP NEWS: Rio Tinto Sells Another Australian Coal Asset

22nd Mar 2018 08:23

LONDON (Alliance News) - Blue-chip miner Rio Tinto PLC said Thursday it has agreed the sale of its interest in the Winchester South coal project for USD200.0 million.

Rio Tinto is to sell its 75% interest in Winchester South, located in Queensland, Australia, to Whitehaven Coal Ltd.

The consideration is an initial USD150.0 million on completion, with the rest payable over the next 12 months.

Chief Executive Jean-Sebastian Jacques commented: "We believe this agreement for the sale of Winchester South represents the best option for the future development of the project while delivering attractive value for Rio Tinto as we continue to streamline our portfolio."

Rio Tinto also said a sale process is still ongoing regarding its stake in the Kestrel mine, its last Australian coal asset.

On Tuesday, Rio Tinto announced the sale of its interests in the Hail Creek coal mine and the Valeria coal resource in Australia to peer Glencore PLC.

Glencore is to pay USD1.7 billion for Rio Tinto's 82% interest in Hail Creek and its 71% holding in Valeria, both located in central Queensland.

London listed shares in Rio Tinto were trading 0.1% higher at 3,719.00 pence in early trade. Glencore shares were up 0.9% at 374.60p.

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