Mining giant Rio Tinto
(ASX:RIO) has agreed to sell its 75% interest in the Winchester South coal development project in Queensland to Whitehaven Coal for $200 million.
The acquisition is to be funded by cash and existing facilities.
Winchester South is a large, high quality coking coal project in the Bowen Basin.
The project has the potential for an open cut mine life of 20-30 years with significant exploration potential.
Coal from the project could be delivered by rail to either Dalrymple Bay Coal Terminal or the Port of Gladstone for export..
The transaction remains subject to regulatory approvals.
Shares in Rio Tinto closed 2.06 per cent lower at $76.78.
