Rio Tinto concludes sale of 40% stake in Bengalla coal JV for $616.7m

29 February 2016 (Last Updated February 29th, 2016 18:30)

Rio Tinto has concluded the sale of its 40% stake in the Bengalla coal joint venture (JV) in Australia to New Hope in a transaction valued at $616.7m.

Bengalla

Rio Tinto has concluded the sale of its 40% stake in the Bengalla coal joint venture (JV) in Australia to New Hope in a transaction valued at $616.7m.

With the latest deal, the company has completed $4.7bn of divestments since January 2013.

Bengalla coal mine is located in the Hunter Valley of New South Wales, Australia, and produced 8.6 million tonnes in 2014.

In 2001, Coal & Allied bought its stake in Bengalla and manages the site on behalf of JV partners, CNA Bengalla Investments (40%), Wesfarmers Bengalla (40%), Taipower Bengalla (10%) and Mitsui Bengalla Investments (10%).

Rio Tinto said in a statement: "A change to the ownership structure of Coal & Allied completed on 3 February 2016 helped enable this transaction."

As a 100% owner of Coal & Allied, Rio Tinto will receive all consideration associated with the sale of its interest in the Bengalla JV and holds a 67.6% interest with management rights in the mine.

"A change to the ownership structure of Coal & Allied completed on 3 February 2016 helped enable this transaction."

The company will also hold interests of 80% and 55.6% respectively, in the integrated Mount Thorley and Warkworth operations.

At present, Rio Tinto owns 100% interest in the Mount Pleasant project.

The company signed an agreement in January 2016, for the sale of the project to Mach Energy Australia for $224m.

The sale is expected to close in the second half of 2016.


Image: Bengalla coal mine is located in the Hunter Valley region of New South Wales. Photo: courtesy of Wesfarmers Resources.