Rio Tinto sells Mozambique coal assets
Published by Jonathan Rowland,
Editor
World Coal,
Rio Tinto Coal Mozambique. Copyright © 2014 Rio Tinto.
Rio Tinto is to cut its losses and sell its Mozambique coal assets to a consortium of Indian buyers for US$50 million, the company said in a statement today. The world’s second largest miner originally bought the assets with the purchase of Riversdale Mining for US$3.7 billion in 2011.
Since then, the development of the Benga coal mine in Mozambique’s Tete Province has been hit by infrastructure constraints and a cut to recoverable reserves, resulting in a US$3 billion write down on the investment last year.
The assets will be bought by Indian Coal Ventures (ICVL), a joint-venture of state-owned Indian companies set up to buy coal mines and assets abroad to help meet India’s growing coal demand.
Written by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/coal/30072014/world-coal-rio-tinto-sells-mozambique-coal-assets-coal1146/
You might also like
IEA: Global coal demand set to increase this year amid Middle East conflict
Energy market disruptions are pushing global coal demand higher this year as sharp rises in natural gas prices prompt countries to turn to alternative sources, according to the IEA’s latest update on the coal sector.
