Rio Tinto (ASX:RIO) has announced the sale of its Hail Creek and Valeria coal assets to Glencore for $US1.7 billion.
Glencore will take away an 82 per cent stake in Hail Creek, which is an operating mine and a 71 per cent stake in Valeria which is not yet developed.
The coal assets are located in Queensland’s Bowen Basin.
Rio says the deal delivers compelling value for shareholders and continues the businesses’ strategy of strengthening its portfolio.
The deal is expected to be completed in the second half of 2018 and the funds will be used for general corporate purposes.
Shares in Rio Tinto (ASX:RIO) closed1.84 per ent lower to $75.23 yesterday.