Rio Tinto completes $2.2 billion sale of Kestrel underground coal mine

By Dale Benton
One of the world’s biggest coal mining companies has finally exited the coal industry, with the sale of its final coal assets in Australia. Rio Tint...

One of the world’s biggest coal mining companies has finally exited the coal industry, with the sale of its final coal assets in Australia.

Rio Tinto has been strategically selling its coal assets throughout Australia and has announced this week that it has successfully sold its final coal mine, the Kestrel underground mine.

In a statement released this week, Rio Tinto has closed the sale of its interest in the Kestrel underground coal mine to a consortium comprising private equity manager EMR Capital and PT Adaro Energy TBK.

The $2.2 billion deal completes the multiple asset sale, including the Hail Creek coal mine and Valeria coal developments for $1.7 billion.

Rio Tinto chief executive 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.”

Related stories:

Rio Tinto sells Hail Creek and Valeria projects to Glencore for $1.7 billion

Rio Tinto completes $300 million sale of Winchester South coal mine

Rio Tinto exits coal with $2.25 billion sale of Kestrel mine

 

Earlier this year, Rio Tinto entered into a binding agreement with Whitehaven Coal Limited to sell its 75% stake in its Winchester South Coal development project in Queensland, Australia.

The deal, comprised of $150 million payable to Rio Tinto and a further unconditional payment of $50 million 12 months after completion, will be valued at $200 million in total.

The total amount achieved from the recent divestments of Rio Tinto’s Queensland coal assets to $4.15 billion.

 

Share

Featured Articles

UK Coal Mine Legal Battle puts Sustainability in Spotlight

UK’s first new deep coal mine in 30 years faces legal challenge, putting the world's complicated relationship with this fossil fuel into the spotlight

Rio Tinto Brings Simandou Guinea Iron Ore Saga to End

Rio Tinto ready to resume construction at Simandou mine in Guinea, which be world's largest iron ore operation and Africa's biggest infrastructure project

Focus on: Uranium, the World's Most Powerful Metal

As China builds biggest ever uranium mine, we profile this extraordinary metal, looking at how it is mined, who by & how uranium operations are regulated

Why Nickel Price Slump has hit BHP so Hard

Supply Chain & Operations

Worley: Tech Key for Copper Ramp-up to be Sustainable

Operations

Focus on: Gypsum, a Building Block for World Construction

Operations