Rio Tinto has completed the sale of its remaining coal assets in Queensland, Australia, for US$3.95B.
The transactions included the sale of Rio Tinto’s interests in the Hail Creek coal mine and Valeria coal development project to Glencore for US$1.7B, and its interest in the Kestrel underground coal mine to a consortium comprising private equity manager EMR Capital and PT Adaro Energy Tbk for US$2.25B.
Rio Tinto CEO J-S Jacques said “The sale of our remaining Australian coal assets delivers exceptional value to our shareholders. Once again, I would like to thank the many people across Rio Tinto and the communities in which we operate who have contributed to the coal business. I wish them continued success under new ownership.”
To reflect the sale of these assets, Rio’s 2018 production guidance has been updated to 4 Mt of hard coking coal and 2.5 Mt of thermal coal. Estimated tax payable on the transactions is in the order of US$1B.