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Rio Tinto continues coal output with sale of $ 200mn from Winchester South to Whitehaven

Rio Tinto continues coal output with sale of $ 200mn from Winchester South to Whitehaven

By DALE BENTON. March 22, 2018, 7:32 a.m.

One of the largest mining operators in the world continues its exit from coal, as it enters into an agreement to sell another of its main coal operations in Australia.

Rio Tinto, as part of a broad exit from the coal industry, has signed a binding agreement with Whitehaven Coal Limited to sell its 75% stake in its Winchester South Coal development project in Queensland, Australia.

The agreement, which includes $ 150 million payable to Rio Tinto and an unconditional additional payment of $ 50 million 12 months after completion, will have a total value of $ 200 million.

Rio Tinto CEO, J-S Jacques, said: "We believe that this agreement for the sale of Winchester South represents the best option for the future development of the project while offering attractive value for Rio Tinto as we continue to optimize our portfolio."

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The news follows the company's recent announcement that the company had agreed to sell its Hail Creek and Valeria coal assets to Glencore in a deal worth $ 1.7 billion.

Rio Tinto CEO, J-S Jacques, said: "We believe that this agreement for the sale of Winchester South represents the best option for the future development of the project while offering attractive value for Rio Tinto as we continue to optimize our portfolio."

All that remains of Rio Tinto's coal assets is the Kestrel underground mine, which the company is currently in the process of negotiating the sale in the coming months.