Rio Tinto has announced a sale price to divest its interest in US coal miner Cloud Peak Energy.

The company priced the underwritten secondary offering of 25.6 million shares of Cloud Peak Energy’s common stock for $19.50 per share.

The transaction, which is expected to close this month, is expected to generate gross proceeds of around $500m, and generate additional $74m if underwriters exercise an over-allotment option in the next 30 days.

Rio Tinto CFO Guy Elliott said the pricing of the secondary offering demonstrates the firm’s overall divestment strategy.

“With the proceeds from the Cloud Peak Energy transactions and the sale of Jacobs Ranch, the total gross proceeds for the divestment of the majority of Rio Tinto Energy America will be at least $2bn,” Elliott said.