PERTH (miningweekly.com) – Mining major Rio Tinto on Tuesday completed the divestment of its 40% interest in the Bengalla coal joint venture, in New South Wales, to ASX-listed New Hope Corporation.
With the $616.7-million transaction completed, Rio’s divestment since the start of 2013 had reached $4.7-billion.
Bengalla was the smallest of three coal mines in the Hunter Valley in which Rio held an interest. The mine produced about 8.6-million tonnes in 2014, of which Rio’s share equalled 3.4-million tonnes.
The mine’s development consent allowed for production to increase to about 12-million tonnes a year.
Rio reported that a change in the ownership structure of subsidiary Coal & Allied, completed in February this year, had assisted in the completion of the Bengalla sale.
Following the sale of the Bengalla operation, Rio maintained a 67.6% interest in the other Hunter Valley operations, with 80% and 55.6% respective holdings in the Mount Thorley and Warkworth operations.
Rio also fully owned the Mount Pleasant project, which it would sell to Mach Energy Australia for $224-million plus royalties. The sale of the Mount Pleasant asset was expected to close in the second half of 2016.