Rio Tinto completes sale of interest in Bengalla Joint Venture for US$616.7 million

01 March 2016

Rio Tinto has completed the sale of its 40 per cent interest in the Bengalla coal Joint Venture in Australia to New Hope Corporation Limited for US$616.7 million1.

Rio Tinto has now announced or completed US$4.7 billion2 of divestments since January 2013.

A change to the ownership structure of Coal & Allied completed on 3 February 2016 helped enable this transaction. Rio Tinto as a 100 per cent owner of Coal & Allied:

  • receives all consideration associated with the sale of Rio Tinto’s interest in the Bengalla Joint Venture;
  • holds a 67.6 per cent interest with management rights in the Hunter Valley Operations mine;
  • holds interests of 80 per cent and 55.6 per cent respectively, with management rights, in the integrated Mount Thorley and Warkworth operations; and
  • currently holds 100 per cent interest in the Mount Pleasant project. On 27 January Rio Tinto announced it had reached a binding agreement for the sale of Mount Pleasant to MACH Energy Australia for US$224 million plus royalties. The sale is expected to close in the second half of 2016.
Mitsubishi Development has moved from holding a 20 per cent stake in Coal & Allied to holding a direct 32.4 per cent stake in the Hunter Valley Operations mine.

Sale consideration is AU$865 million converted into US$616.7 million at the spot rate of 0.713.
2Amount is before finalisation of net debt and working capital adjustments.