Rio Tinto to sell coal assets in Mozambique

30th Jul 2014 08:02

Diversified mining group Rio Tinto has announced that it will sell its coal assets in Mozambique for $50m.Rio Tinto Coal Mozambique, which comprises the 65%-owned Benga coal mine and other projects in the Tete province, are being sold to International Coal Ventures Private Limited.The transaction to sell the assets, which were acquired by Rio as part of its purchase of Riversdale Mining in 2011, is expected to close in the third quarter and is subject to certain conditions and regulatory approvals.Rio Tinto Coal Mozambique's share of production was 246,000 tonnes of hard coking coal and 230,000 tonnes of thermal coal in the first half of 2014, down 3% and 4% year-on-year, respectively.The company said that output was affected by rail and port constraints, as well as stoppages and operational changes in the first quarter, before production ramped up in the second quarter.In a statement on Wednesday, Rio explained: "During the transition to the new owner, Rio Tinto will continue to manage the mine to the highest safety and environmental standards. Rio Tinto's other assets in the country are unaffected by this transaction."BC