Rio Tinto sells Bengalla coal interest for US$616.7 million

Rio Tinto has completed the sale of its 40% interest in the Bengalla coal Joint Venture in Australia to New Hope Corporation Limited for US$616.7 million.

Rio Tinto has reported that is has now announced or completed US$4.7 billion of divestments since January 2013.

According to the global mining giant, a change to the ownership structure of Coal & Allied completed on 3 February 2016 helped enable this transaction.

As a 100% owner of Coal & Allied Rio receives all consideration associated with the sale of Rio Tinto’s interest in the Bengalla Joint Venture; holds a 67.6% interest with management rights in the Hunter Valley Operations mine; holds interests of 80% and 55.6% respectively, with management rights, in the integrated Mount Thorley and Warkworth operations; and currently holds 100% interest in the Mount Pleasant project. On 27 January, Rio Tinto announced it had reached a binding agreement for the sale of Mount Pleasant to MACH Energy Australia for US$224 million plus royalties. The sale is expected to close in the second half of 2016.

Mitsubishi Development has moved from holding a 20% stake in Coal & Allied to holding a direct 32.4% stake in the Hunter Valley Operations mine.

Edited from press release by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/coal/01032016/rio-tinto-sells-bengalla-coal-interest-318/