The deal which was first announced earlier this year saw the Australian-based coal miner Whitehaven, pay Rio Tinto AU$200 million for the valuable project.
International mining company Rio Tinto (LSE:RIO) has finalized the sale of its 75 percent interest in the its sale of the Winchester South coal development project in Queensland, Australia, to Whitehaven Coal (ASX:WHC). The deal which was first announced earlier this year saw the Australian-based coal miner, Whitehaven pay Rio Tinto AU$200 million for the valuable project.
“Winchester South will form a key part of the company’s longer term growth plan and complements our Vickery project in the Gunnedah Basin as another high quality asset which will help Whitehaven respond to the strong and growing demand for premium coking coal that exists in Asian markets,” Whitehaven Coal managing director and CEO Paul Flynn said at the time.
He continued: “Whitehaven generates the greatest value for shareholders where the company can deploy its full breadth of skills across approvals, construction and operations and the Winchester South project aligns perfectly with these strengths.”
Rio Tinto is an international miner focused on recovering a variety of minerals and resources including, iron coal diamonds gold and uranium at its ongoing projects around the globe.
As quoted from the press release:
Total consideration of AU$200 million is comprised of AU$150 million in cash received today and an unconditional cash payment of AU$50 million due in 12 months. The sale of Rio Tinto’s interests in the Kestrel and Hail Creek coal mines and Valeria coal development project are expected to complete during the second half of 2018.