Rio Tinto continues exit from coal with $200mn sale of Winchester South to Whitehaven
One of the world’s largest mining operators is continuing its exit from coal as it enters into an agreement to sell another one of its major coal operations in Australia.
Rio Tinto, as part of a company wide exit from the coal industry, has 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
Rio Tinto chief executive J-S Jacques said “We believe this agreement for the sale of Winchester South represents the best option for the future development of the project while delivering attractive value for Rio Tinto as we continue to streamline our portfolio.”
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The news follows the company’s recent announcement that the company had agreed to sell its Hail Creek and Valeria coal assets to Glencore in a deal worth $1.7 billion.
Rio Tinto chief executive J-S Jacques said “We believe this agreement for the sale of Winchester South represents the best option for the future development of the project while delivering attractive value for Rio Tinto as we continue to streamline our portfolio.”
All that remains of Rio Tinto’s coal assets is the Kestrel underground mine, which the company is currently in the process of negotiating the sale of in the coming months.
