Rio Tinto completes Clermont mine sale

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Argyle3 rdax
Argyle3 rdax

Rio Tinto has completed the sale of its 50.1% interest in the Clermont Joint Venture to GS Coal, a company jointly owned by Glencore and Sumitomo Corporation, for US$1.015 billion (A$1.09 billion).

Image credit: www.riotinto.com. Photographer: Christian Sprogoe PhotographyDate: 27 July 2009
Image credit: www.riotinto.com. Photographer: Christian Sprogoe PhotographyDate: 27 July 2009

According to the media release by Rio Tinto, Glencore has taken over management of the thermal coal mine in central Queensland, which holds 165 million tonnes of thermal coal and has an expected life of 16 years.

The sale of Clermont mine delivers good value for Rio Tinto’s shareholders and demonstrates the Group’s focus on strengthening its balance sheet and taking a disciplined approach to allocating capital.

According to the article on The Australian, Glencore Xstrata expects to earn an attractive financial return from the purchase.

“As well as being Australia’s third-largest thermal-coal mine, Clermont is structurally low-cost,” he said.

Adertisement

Despite the sale of Clermont mine, Rio Tinto said its future lies with the Australian coal industry, where the company employs more than 5000 people across its mines in Queensland and New South Wales.

Last year Rio Tinto completed a US$2 billion extension of the Kestrel Mine, with studies for extending the life of Hail Creek Mine currently underway.