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Rio, through subsidiary Queensland Coal, had originally flagged its intention to buy the tenements earlier this year before pulling out, and then reinstating its offer again in October.
Eastern accepted the offer in October and received a deposit for the sale. The offer was subject to board approval on both sides. After being rejected, Eastern has now refunded the deposit.
Eastern subsidiary Broughton Coal Mining holds 90% of the Broughton Coal Joint Venture, with Mitsui Coal Holdings holding the remaining 10%. The tenement is adjacent to Rio Tinto's Hail Creek mine.
Rio was trading down about 9% mid-morning today at $60, while Eastern was down 23% at 10c.
