Rio Tinto sells US project as cost cutting continues

13th Jun 2013 07:05

Rio Tinto has agreed to sell its US-based Eagle nickel-copper mine for 325m US dollars cash as part of a series of asset sales planned by new Chief Executive Sam Walsh. The UK-headquartered mining group has reached a binding agreement with Canadian company Lundin Mining Corporation and said it expected to complete the deal in the third quarter of 2013.Based in Michigan's Upper Peninsula, the Eagle underground nickel-copper mine and mill had begun construction in June 2010 and is roughly 55% complete. Walsh has rung the changes since his promotion from Iron Ore Chief Executive in January, when the company was forced into an "unacceptable" $14bn writedown.Walsh has streamlined his team and brought in new faces as part of his plan to achieve wide-ranging cost reduction targets at the group.Chris Lynch, Chief Financial Officer appointed in February, said the sale of Eagle demonstrated Rio's "renewed focus and discipline" in the way it allocates capital. "We are making good progress on a number of other potential divestments as part of our goal to achieve substantial proceeds from divesting non-core assets."OH