Rio Tinto: sells Australian coal project

(CercleFinance.com) - Rio Tinto is continuing to streamline its portfolio: the global miner has entered into a binding agreement with Whitehaven Coal for the sale of a 75% stake in a coal development project in Queensland, Australia, for 200 million dollars.


Chief executive Jean-Sébastien Jacques said that the deal, which is set to be completed in the second quarter, delivers "attractive value" for the company.

The price includes 150 million dollars payable on the completion date and a further unconditional payment of 50 million dollars payable 12 months after the acquisition is finalised.

Once developed, the Winchester South project - which contains 356 million tonnes of coal mineral resources according to estimates - is expected to produce coking coal and thermal coal products.

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