Glencore Xstrata, Sumitomo to Buy Rio’s Clermont Coal Mine Stake

- October 25th, 2013

Reuters reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) will be selling its 50.1-percent stake in the Queensland-based Clermont thermal coal mine to Glencore Xstrata plc (LSE:GLEN) and Sumitomo Corp. (TSE:8053) for $1.015 billion in cash.

Reuters reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) will be selling its 50.1-percent stake in the Queensland-based Clermont thermal coal mine to Glencore Xstrata plc (LSE:GLEN) and Sumitomo Corp. (TSE:8053) for $1.015 billion in cash.

As quoted in the market news:

The sale – for $1.015 billion in cash – will be a welcome boost for Rio’s plan to sell down unwanted assets, as the world’s third-largest miner pares debts of $22 billion, cuts costs and tries to meet shareholder demands for better returns.

Rio said on Friday it had announced or completed almost $3 billion of divestments this year, but its larger planned sales – including a stake in Canada’s largest iron ore producer, Iron Ore Company of Canada (IOC) – have struggled. The miner has already scrapped the sale of its diamond unit and aluminum.

‘It’s not a bad price (for Rio), the market will be reasonably pleased,’ said analyst Des Kilalea at RBC Capital Markets. ‘But the one everyone is looking for is IOC.’

Click here to read the full Reuters report.

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