Global miner Rio Tinto Ltd
(ASX:RIO) says it is to receive US$741 million in connection with Cloud Peak Energy’s initial public offering and related transactions.
Rio says this includes proceeds of at least US$434 million from the sale of part of Rio Tinto’s interest in Cloud Peak Energy Resources LLC in connection with Cloud Peak Energy’s IPO of common stock and a cash distribution by Cloud Peak Energy Resources of US$307 million from the proceeds of its debt offering of US$600 million.
The miner expects to retain an interest in Cloud Peak Energy Resources of up to 48%.
Rio Chief Financial Officer Guy Elliot says including the sale of Jacobs Ranch, Rio will realise proceeds of at least US$1.5 billion before tax for assets that were previously part of Rio Tinto Energy America, while retaining a substantial interest in Cloud Peak Energy Resources LLC.
During 2008 Rio has completed divestments of US$3.1 billion, and has so far in 2009 has agreed asset sales of US$5.2 billion.
Rio Tinto’s 2008 profit of US$3.7 billion was a big drop from the year before.
