Tata Steel to Sell Riversdale Mining Stake for $1.6bn

19 June 2011 (Last Updated June 19th, 2011 18:30)

Indian firm Tata Steel will sell its stake in Riversdale Mining to Rio Tinto for a total value of A$1.06bn (US$1.12bn). Tata Steel holds a 26.27% stake in Riversdale Mining through its subsidiary Tata Steel Global Minerals. Tata Steel will continue its joint venture with Riv

Indian firm Tata Steel will sell its stake in Riversdale Mining to Rio Tinto for a total value of A$1.06bn (US$1.12bn).

Tata Steel holds a 26.27% stake in Riversdale Mining through its subsidiary Tata Steel Global Minerals.

Tata Steel will continue its joint venture with Riversdale Energy, a subsidiary of Riversdale Mining, which owns coal assets in Mozambique.

Rio Tinto will now hold a total of 99.74% of all Riversdale shares.

Rio Tinto Energy chief executive Doug Ritchie said the Riversdale acquisition is in line with the company's strategy to invest and operate long-life, cost-competitive mines and businesses with significant growth potential.

"We have already started to integrate Rio Tinto's world-class operating and technical capability into the operations. We are determined to develop Riversdale's assets in a sustainable, mutually beneficial manner for the people of Mozambique," Ritchie said.