Deal in Australia Rio Tinto has signed a deal with Whitehaven Coal to sell a 75% stake in the Winchester South coal development project in Queensland, Australia, for $200 million.
“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,” Jean-Sébastien Jacques, the CEO of Rio Tinto, said in a statement.
Total consideration comprises $150 million that is to be paid to Rio Tinto by Whitehaven on the date of completion, and a further unconditional payment of $50 million which is to be payable 12 months after the date of completion, according to Rio Tinto.
Rio Tinto says it has 50,000 employees in about 35 countries across six continents. The group’s four product groups include aluminium, copper and diamonds, energy and minerals, and iron ore.