PERTH (miningweekly.com) – Mining major Rio Tinto has sold its Mt Pleasant thermal coal assets, in New South Wales, to MACH Energy Australia in exchange for $224-million plus royalties.
Mt Pleasant is a large-scale, thermal coal asset in the Hunter Valley with total marketable reserves of 474-million tonnes.
Following the recently announced binding agreement for Rio’s interest in the neighbouring Bengalla coal joint venture, the sale of the Mt Pleasant asset brought the amount of agreed sales to $830-million.
“These agreements for over $800-million in asset sales deliver significant value for our shareholders, with the potential for future royalties from Mt Pleasant,” said Rio Tinto copper and coal CEO Jean-Sébastien Jacques.
“We believe Mt Pleasant can have a very positive future under its new owners with different priorities for development and capital allocation.”
Since January 2013, Rio has announced or completed $4.7-billion of divestments.
The sale is subject to certain conditions precedent being met, including completion of the restructure of Coal & Allied and regulatory approvals, and is expected to close in the second quarter of 2016.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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