Coal news and updates

Rio Tinto has agreed to sell two major Australian coal mining assets to Chinese controlled miner Yancoal for $US2.45 billion ($3.2 billion), under a deal that all but completes the company's exit from power generation coal.

 

Tuesday's agreement will see Yancoal take ownership of Rio's 67.6 per cent stake in the Hunter Valley Operations mining complex (HVO) in New South Wales as well as Rio's interests in the nearby Mt Thorley Warkworth mine.

 

Mt Thorley Warkworth is comprised of two open cut mines, with Rio owning 80 per cent of the Mt Thorley part and 56 per cent of the Warkworth mine.

 

The sales continue a divestment phase that has now seen Rio sell more than $US7 billion worth of assets since 2013.

 

The deal is a major statement of commitment to the Australian coal sector from Yancoal's ultimate parent, Chinese state-owned company Yankuang Group, given the massive losses Yancoal has endured since its boom time acquisitions of Felix Resources in 2009, Syntech Resources and Wesfarmers Premier Coal mine in 2011 and Gloucester Coal through a merger in 2012

Source: AFR.com