Rio Tinto has agreed to sell 50.1% interest in the Clermont Joint Venture to GS Coal Pty Ltd, a company owned by Glencore Xstrata and Sumitomo Corporation for US$1.015 billion.
Date: 27 July 2009
Under the terms of sale, Clermont Mine, which produces thermal coal in central Queensland, will now fall under the management of the global diversified natural resource giant Glencore Xstrata.
“The sale of Clermont Mine will allow us to realize value for our shareholders as we continue optimizing our portfolio. It also demonstrates our focus on strengthening our balance sheet and taking a disciplined approach to allocating capital across the Group,” said Rio Tinto Chief Financial Officer Chris Lynch.
“Rio Tinto remains committed to a long-term future in central Queensland. Production has recently commenced from the US$2 billion extension of the Kestrel Mine and studies are currently underway to extend production from the Hail Creek Mine. We expect Clermont Mine will continue to perform strongly under its new ownership and make an ongoing contribution as a member of the local community.”
Mr. Lynch further assures that high safety and environmental standards at Clermont Mine will be maintained through the transition period to the new manager.
With the completion of the sale of Clermont Mine, Rio Tinto is said to have completed US$2.915 billion of divestments this year, which also include the sales of its interests in Northparkes, Palabora and Eagle.
The sale is subject to agreement with Rio Tinto’s joint venture partners, Mitsubishi Development Pty Ltd, J-Power Australia Pty Ltd and L.C.D. Australia Pty Ltd on certain matters under the Clermont Joint Venture Agreement.
The sale is also conditional upon certain conditions precedent, including customary regulatory approvals. The transaction is to be finalized in the first quarter of 2014.
