Diversified resources giant Rio Tinto has sold its Jacobs Ranch coal mine, in the US, to Arch Coal for $764-million, the group reported on Thursday.
Rio, which is selling non-core assets to pay down debt, agreed in March to sell the mine for $761-million in cash, but the price was adjusted to reflect the closing working capital balance, it said in a statement.
Rio has been divesting assets to ease the large levels of debt it took on to fund the acquisition of Canada's Alcan, in 2007.
Earlier this month, the group said it had agreed to sell a 56% stake in its Alcan Engineered Products' Cable division to Los Angeles-based Platinum Equity.
Also in 2009, Rio agreed to sell the majority of the Alcan packaging businesses for $2,03-billion, to Australian firm Amcor, sold its interest in the Ningxia aluminium smelter in China for $125-million, its potash assets and Brazilian iron-ore operations for $1,6-billion, as well as the Alcan Packaging Food Americas unit to Bemis.
Earlier this year, the group arranged a landmark $19,5-billion investment by Chinese State-owned metals firm Chinalco, but broke off the deal in June.
Rio opted instead for a $15,2-billion rights issue and a cash-saving iron-ore joint venture with larger rival BHP Billiton.
The Jacobs Ranch mine, in Wyoming, shipped 42,1-million tons of coal in 2008.
The mine had approximately 381-million tons of proven and probable reserves at December 31, 2008.
Source: Mining Weekly
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