One of the largest metals and mining companies continues its exit from the coal industry, with the completion of a multi-million dollar sale of its latest coal asset.
Rio Tinto has announced that it has completed the sale of its 75% interest in the Winchester South coking coal project in a deal valued at $200 million.
Winchester South, located in Queensland’s Bowen Basin, is an open cut mine with a life of mine (LOM) of around 20-30 years. The project has the potential to produce around 7.5 Mtpa to 15 Mtpa.
The deal, which was initially announced in March, saw a payment of $US150 million in cash and an unconditional cash payment of $US50 million, which is due in 12 months.
The completion of this sale follows on from the direction that Rio Tinto took to exit the coal industry, with the sale of its $2.25 billion sale of its Kestrel mine earlier this year as well as its Hail Creek coal mine and Valeria coal development project for $1.7 billion.