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Rio Tinto to sell interest in Queensland coal project for $200m
Rio Tinto has agreed to sell its 75% interest in the Winchester South coal development project in Queensland, Australia, to Whitehaven Coal Limited for $200m.
The total consideration comprises $150m payable to Rio on the date of completion and a further unconditional payment of $50m payable 12 months after completion.
Chief executive officer Jean-Sebastien Jacques said: "We believe this agreement for the sale of Winchester South represents the best option for the future development of the project while delivering attractive value for Rio Tinto as we continue to streamline our portfolio."
Rio said a separate process is still underway to sell its interest in the Kestrel underground mine, which is its last remaining Australian coal asset. The miner said it will update the market on this process as appropriate.
Winchester South is a large undeveloped coal project located in the northern Bowen Basin, approximately 30km south-east of the Moranbah township. The tenement contains 356 million tonnes of coal mineral resources. Once developed, it is expected to produce coking coal and thermal coal products.
At 0955 GMT, the shares were down 0.7% to 3,689p.