Rio sells coal stake to China

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