Rio completes sale of its stake in Bengalla

RIO Tinto has completed the sale of its 40% interest in the Bengalla Coal Joint Venture in New South Wales to New Hope Corporation Limited for $US616.7 million, meaning that it has announced or completed $4.7 billion of divestments since January 2013.

Lou Caruana

A change to the ownership structure of Coal & Allied completed on 3 February 2016 helped enable this transaction.

Rio Tinto, as a 100% of Coal & Allied, receives all consideration associated with the sale of Rio Tinto’s interest in the Bengalla Joint Venture.

It also holds a 67.6% interest with management rights in the Hunter Valley Operations mine and holds interests of 80% and 55.6% respectively, with management rights, in the integrated Mount Thorley and Warkworth operations.

It currently holds 100% interest in the Mount Pleasant project. On 27 January Rio Tinto announced it had reached a binding agreement for the sale of Mount Pleasant to MACH Energy Australia for $224 million plus royalties. The sale is expected to close in the second half of 2016.

Mitsubishi Development has moved from holding a 20% stake in Coal & Allied to holding a direct 32.4% stake in the Hunter Valley Operations mine.