Rio to sell Kestral coal mine to focus on other extractives
The company was looking to exit from coal, a strategic decision taken by the firm in 2017, and wanted to focus on its iron ore, copper, and aluminium division.
Adaro Energy is an Indonesian coal company and EMR capital is a private equity firm.
The company was looking to exit from coal, a strategic decision taken by the firm in 2017, and look to focus on iron ore, copper, and aluminium division.
Kestral coalmine is in Queensland, Australia and the aforesaid deal is subject to the approval from the regulatory body. The expected completion of this deal is estimated to be during the second half of 2018.
This deal is the company's third coal deal of the month. The company plans to use the amount received from the assets sale for general corporate purposes. The company sold 80 percent of the stakes.
In the support of the firm, CEO Jean Sebastien Jacques said that the Glencore's purchase and the latest coal purchase along with the divestment of underdeveloped coal projects would benefit Rio. This will make them more focus and will strengthen their portfolio.