Rio Tinto completes Coal & Allied divestment for $2.69 bln
- Rio Tinto completes the sale of its wholly owned subsidiary Coal & Allied to Australian Yancoal

British-Australian multinational mining company Rio Tinto sold its wholly owned subsidiary Coal & Allied Industries Limited to Yancoal Australia Limited on late Friday.

Rio Tinto said that it will receive total consideration of $2.69 billion for the sale, together with customary adjustments for net debt and net working capital at completion.

The $2.69 billion comprises $2.45 billion in cash paid today and a further $240 million of unconditional guaranteed royalty payments.

The company said that it will use the consideration received for general corporate purposes and the group’s capital allocation framework will be applied.

With production from the sold operations transferring to Yancoal, the company's guidance for thermal coal production in 2017 has been revised to 13-14 million tonnes, from 17-18 million tonnes previously.

By Murat Temizer

Anadolu Agency

02 Sep,2017