PERTH (miningweekly.com) – Mining giant Rio Tinto has signed a $1.015-billion sales agreement with global miners GlencoreXstrata and Sumitomo Corporation to divest of its 50.1% stake in the Claremont thermal coal project, in Queensland.

GlencoreXstrata and Sumitomo would each hold a 25.05% economic interest in the mine, with GlencoreXstrata assuming operational management and marketing of the joint venture (JV).

“The sale of Clermont mine will allow us to realise value for our shareholders as we continue optimising our portfolio. It also demonstrates our focus on strengthening our balance sheet and taking a disciplined approach to allocating capital across the group,” said Rio CFO Chris Lynch.

“Rio remains committed to a long-term future in central Queensland. Production has recently commenced from the $2-billion extension of the Kestrel mine and studies are currently under way to extend production from the Hail Creek mine.”

Lynch said that Clermont mine was expected to continue to perform strongly under its new ownership and make an ongoing contribution as a member of the local community.

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.

GlencoreXstrata head of coal assets Peter Freyberg noted that the company was pleased to be jointly acquiring a controlling interest in the mine.

“This investment epitomises our focus on identifying high-quality assets that complement our existing operations and marketing capabilities. Going forward, we will seek to further expand our relationship with Sumitomo where there are mutually beneficial opportunities.”

Sumitomo’s senior managing executive officer and GM for mineral resources, energy, chemical and electronics, Toru Furihata, pointed out that GlencoreXstrata and Sumitomo had managed a successful partnership over several years.

“We draw confidence from the mine being operated by Glencore, given their strong track record of extracting maximum value from coal assets.”

With the agreed sale of the Clermont mine, Rio has now announced or completed $2.915-billion of divestments this year, including a binding agreement for the sale of its interest in Northparkes, in New South Wales, and the recently completed sales of Palabora, in South Africa, and Eagle, in the US.

The sale is subject to agreement with Rio Tinto’s J partners Mitsubishi Development, J-Power Australia and J.C.D. Australia on certain matters under the Clermont JV agreement, such as pre-emption rights.

The sale is also conditional upon certain conditions precedent, including the customary regulatory approvals.

The transaction is expected to close in the first quarter of 2014.