Rio sells coal stake to China

The Star Early Edition - - INTERNATIONAL -

RIO TINTO Group has agreed to sell its ther­mal coal as­sets in Aus­tralia’s Hunter Val­ley for as much as $2.45 bil­lion (R32.7bn) as the world’s sec­ond-big­gest min­ing com­pany ac­cel­er­ates its move away from the fos­sil fuel. Rio will sell its Coal & Al­lied In­dus­tries Ltd sub­sidiary to Yan­coal Aus­tralia Ltd, con­trolled by China’s Yanzhou Coal Min­ing Com­pany, it said in a state­ment yes­ter­day. The deal, sub­ject to Aus­tralian gov­ern­ment ap­proval, in­cludes an ini­tial $1.95bn cash pay­ment and $500 mil­lion in an­nual in­stal­ments of $100m over five years fol­low­ing com­ple­tion. – Bloomberg

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