Rio Tinto to sell coal project to Whitehaven

Company News

by Rachael Jones

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.

  

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.