Rio Tinto completes sale of Mount Pleasant thermal coal assets

Rio Tinto has completed the sale of its Mount Pleasant thermal coal assets to MACH Energy Australia Pty Ltd for US$220.7 million plus royalties.¹

Rio Tinto has now completed US$4.7 billion of divestments since January 2013.²

¹ The sale agreement has been amended to bring forward two payments originally scheduled eight and 16 months after completion. The agreement now includes a single payment on completion of US$195.7 million, a conditional payment of US$25 million, and royalties, payable quarterly at two per cent of Gross FOB Revenue for coal sold from existing reserve estimates at prices exceeding US$72.50/tonne. This new agreement sees the total unconditional payments decrease by approximately $3.3 million. The proceeds of the sale will be used for general corporate purposes. As of 30 June 2016, the project had gross assets valued at US$137 million and year to date profits of US$243,000.

² Amount is before finalisation of net debt and working capital adjustments.