Rio Tinto
(ASX:RIO) has completed the sale of its thermal coal business to Yancoal Australia
(ASX:YAL) for US$2.69 billion.
The multinational mining giant will receive the total consideration in cash and guaranteed royalty payments, with a further US$90 million payable by the end of next year.
As part of the sale, Rio may also receive an additional royalty up to US$410 million, which is linked to the coal price.
As of today, Yancoal will officially take over the management of Coal and Allied Industries, in the Hunter Region of New South Wales.
Following the change over, the guidance for thermal coal production has been dropped from 17-18 million tonnes to be between 13-14 million tonnes.
Shares in Rio Tinto
(ASX:RIO) closed 1.7 per cent higher yesterday to $67.84.
