“These agreements for over $800 million in asset sales deliver significant value for our shareholders, with the potential for future royalties from Mount Pleasant,” said Jean-Sébastien Jacques, chief executive for copper and coal at Rio Tinto. “We believe Mount Pleasant can have a very positive future under its new owners with different priorities for development and capital allocation.”
Rio Tinto has now announced or completed US$4.7 billion of divestments since January 2013.
Mount Pleasant is a large-scale, thermal coal asset in the Hunter Valley of New South Wales with total marketable reserves of 474 million metric tons. The sale is subject to certain conditions precedent being met, including completion of the restructure of Coal & Allied and regulatory approvals, and is expected to close in the second quarter of 2016.