Rio Tinto has completed the sale of its 50.1% interest in the Clermont joint venture to GS Coal Pty Ltd, a company jointly owned by Glencore and Sumitomo Corp., for US$ 1.015 billion.
As per the terms of the sale, Glencore has taken over management of Clermont Mine, which produces thermal coal in central Queensland.
Rio has assured shareholders that the sale of the mine delivers good value for them. The company said the transfer demonstrates the group’s focus on strengthening its balance sheet and taking a disciplined approach to allocating capital.
Rio Tinto said in a statement that it remains committed to a long-term future in the Australian coal industry, where its mines provide work for more than 5000 people in Queensland and New South Wales.
The company’s Australian coal operations include the US$ 2 billion extension of the Kestrel mine, which was completed last year, as well as studies currently underway into options to extend the life of the Hail Creek mine, subject to future investment decisions.
Adapted from press release by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/02062014/rio_tinto_sells_share_in_clermont_mine_919/