Rio Tinto completes $300 million sale of Winchester South coal mine
One of the largest metals and mining companies continues its exit from the coal industry, with the completion of a multi-million dollar sale of its latest coal asset.
Rio Tinto has announced that it has completed the sale of its 75% interest in the Winchester South coking coal project in a deal valued at $200 million.
Winchester South, located in Queensland’s Bowen Basin, is an open cut mine with a life of mine (LOM) of around 20-30 years. The project has the potential to produce around 7.5 Mtpa to 15 Mtpa.
The deal, which was initially announced in March, saw a payment of $US150 million in cash and an unconditional cash payment of $US50 million, which is due in 12 months.
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The completion of this sale follows on from the direction that Rio Tinto took to exit the coal industry, with the sale of its $2.25 billion sale of its Kestrel mine earlier this year as well as its Hail Creek coal mine and Valeria coal development project for $1.7 billion.
