Rio Tinto has completed the sale of its wholly-owned subsidiary Coal & Allied Industries Limited to Yancoal Australia Limited.
As quoted in the press release:
Rio Tinto will receive total consideration of $2.69 billion for the sale, together with customary adjustments for net debt and net working capital at completion. The $2.69 billion comprises $2.45 billion in cash paid today and a further $240 million of unconditional guaranteed royalty payments. The first royalty payment of $10 million was made today and an additional $100 million will be received by the end of this year. A further $90 million is expected before the end of 2018. Under the terms of the sale, Rio Tinto may also receive an additional royalty linked to the coal price capped at $410 million.