Rio Tinto Sells 80% Stake in Kestrel Mine for $2.25 Billion

   By Oliver Griffin 
 

Shares in Rio Tinto PLC (RIO.LN) 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 (ADRO.JK).

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 (GLEN.LN) for $1.7 billion. It said on March 22 that it sold its Winchester South coal development to Whitehaven Coal Ltd. (WHC.AU) 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 [e-mail]

(END) Dow Jones Newswires

March 27, 2018 09:55 ET (13:55 GMT)

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