British-Australian group Rio Tinto will sell its stake in a closed coal mine for A$1 ($0,75). The company confirmed the negotiations with the Australian firm Terracom, writes the Financial Times.
We are talking about the mine, Blair Atholl, located in the state of Queensland. It is a joint venture of Rio Tinto and two Japanese companies.
Terracom representative stated that they will receive from the owners of Blair Atholl And$80 million ($59.8 million) for rehabilitation. The company plans to resume production in the fourth quarter at 2 million tons per year.
Rio Tinto closed the Blair Atoll in 2012 in response to falling coal prices. In 2008, the ton of coal cost $180, and now give her a little more than $50. The glut in the market was caused by overproduction and falling demand from China, reminiscent of FT.
Rio Tinto shares on the Australian auction rose on Monday by 3.7%. Last week the company decided to refuse from the share in the copper mine, located in Papua New Guinea. The publication notes that sales are part of a strategy to get rid of non-core assets, the proposed new head of Rio Tinto’s Jean-Sebastian Jacques.
Rio Tinto is one of the largest mining companies in the world. According to its statements, its revenue in 2015 is $34,829 billion and profit of $1,719 billion.
The deal to Blair Atholl is not the first precedent of the sale of Australian coal assets for a nominal sum. Last year, Brazilian company Vale and Japanese Corporation Sumitomo has sold for A$1 mine Isaac plains, also located in Queensland. In the three years before the company was worth more than $600 million, the FT notes.