Rio Tinto Sells its Interest in Clermont

Rio Tinto will sell its 50.1% interest in the Clermont joint venture to GS Coal Pty Ltd., a company jointly owned by Glencore Xstrata and Sumitomo Corp, for $1.015 billion. Under the terms of the sale, Glencore Xstrata will take over management of the Clermont mine, which produces thermal coal in central Queensland, Australia. “Rio Tinto remains committed to a long-term future in central Queensland,” said Chris Lynch, CFO, Rio Tinto. “Production has recently commenced from the $2 billion extension of the Kestrel mine and studies are currently under way to extend production from the Hail Creek mine. We expect Clermont mine will continue to perform strongly under its new ownership.” With the sale of Clermont, Rio Tinto has now announced or completed $2.92 billion of divestments this year.