Rio Tinto completes $1bn Clermont sale to Glencore

2nd Jun 2014 07:10

Mining giant Rio Tinto has completed the $1.02bn sale of its majority interest in the Clermont Mine in Australia, leaving buyer Glencore in charge.The disposal of the 50.1% stake, announced last October, "delivers good value for Rio Tinto's shareholders", the company said in a statement on Monday.Clermont is located in central Queensland and, when at full production, is said to produce up to 12m tonnes of thermal coal annually.The project only opened in 2010, though the sale is thought to be part of Chief Executive Sam Walsh's attempt to improve returns for investors by selling non-core assets.Clermont is the third-largest thermal coal mine in Australia, currently operated by Rio Tinto along with joint venture partners Mitsubishi Development Pty (31.4%), J-Power Australia Pty (15%) and JCD Australia Pty (3.5%).Rio's interest has now been sold to GS Coal Pty, a company jointly owned by Glencore and Sumitomo Corporation. "Under the terms of the sale, Glencore has now taken over management of Clermont Mine," Rio said.BC