By Oliver Griffin
Shares in Rio Tinto PLC rose on Tuesday after the company said that it has sold its entire stake in the Kestrel coal mine in Queensland, Australia, for $2.25 billion.
The dual-listed mining company said it sold all of its 80% stake in the Kestrel mine to a consortium comprising of private equity manager EMR Capital and Indonesian coal company Adaro Energy.
In 2017 the Kestrel mine generated earnings before interest, taxes, depreciation and amortization of $341 million, and pretax profit of $258 million, Rio Tinto said.
The sale of the Kestrel mine takes Rio Tinto's total divested assets in Queensland, Australia, to $4.15 billion. On March 20, the mining company announced that it sold its Hail Creek mine and adjacent coal resources to Glencore PLC for $1.7 billion. It said on March 22 that it sold its Winchester South coal development to Whitehaven Coal Ltd. for $200 million.
Rio Tinto said that the funds generated by the asset sales will be used for corporate purposes. The company said it forecasts a tax charge of $500 million in Australia, depending on the final proceeds, which will take working capital adjustments into account.
Rio Tinto shares at 1337 GMT were up 3.0%, or 108.00 pence, at 3,644.00 pence.
Write to Oliver Griffin at [email protected]
Stocks mentioned in the article : Rio Tinto, Adaro Energy Tbk PT, Glencore, Whitehaven Coal Ltd