Rio Tinto completes $1bn Clermont sale, Glencore takes over operations
JOHANNESBURG (miningweekly.com) – Diversified mining company 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 $1.015-billion.
Under the terms of the sale, which Rio Tinto announced in October last year, Glencore has now taken over management of Clermont mine, which produces thermal coal in central Queensland.
Glencore, under the leadership of Ivan Glasenberg, is keen to increase its coal position, as demand is expected to remain solid in key regions. In Asia, coal remains the prime choice to fuel economic growth.
Clermont is a large-scale opencut mine producing high energy thermal coal with relatively low ash. It is fully capitalised and current saleable production is 12-million tonnes a year, making it Australia’s third-largest thermal coal mine.
The project has a Joint Ore Reserves Committee-compliant reserve of 172-million tonnes.
“The sale of Clermont mine delivers good value for Rio Tinto’s shareholders. It demonstrates the group’s focus on strengthening its balance sheet and taking a disciplined approach to allocating capital,” Rio Tinto reported in a statement.
The mining group said it remained committed to a long-term future in the Australian coal industry, where its mines provide work for more than 5 000 people in Queensland and New South Wales.
Rio Tinto has completed a $2-billion extension of the Kestrel mine last year and studies were under way into options to extend the life of Hail Creek mine, subject to future investment decisions.
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