Rio Tinto (ASX:RIO)
has successfully used some of its surplus liquidity to further reduce debt and has announced the results of its European bond tender offer.
Yesterday the global mining company sold its remaining coal mine in Australian for $2.25 billion, boosting its ability to fund future buybacks or higher dividends.
The sale of Rio's stake in the Kestrel mine to private equity manager EMR Capital and Indonesia's Adaro Energy was Rio's third coal deal this month.
In total, the assets have raised $4.15 billion. Rio has said the funds would be used for 'general corporate purposes', which could include increased returns for shareholders.
Shares in Rio Tinto closed down yesterdya 1.04 per cent to $73.39.