Rio completes sale of Mt Pleasant

RIO Tinto has completed the $220.7 million sale of its Mount Pleasant thermal coal assets in New South Wales to MACH Energy Australia but has amended the sale agreement to bring forward two payments originally scheduled eight and 16 months after completion.

Lou Caruana

The agreement now includes a single payment on completion of $195.7 million, a conditional payment of $25 million, and royalties, payable quarterly at 2% of gross free-on-board revenue for coal sold from existing reserve estimates at prices exceeding $72.50/tonne.

This agreement reduces the total unconditional payments by approximately $3.3 million.

The proceeds of the sale will be used for general corporate purposes, Rio Tinto said in a statement.

As of June 30, the Mt Pleasant project had gross assets valued at $137 million and year to date profits of $243,000.

Rio Tinto also completed the sale of its interest in the Bengalla thermal coal joint venture in NSW for $617 million on March 1.

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