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The Wall Street Journal reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) is thinking of selling all or part of its Mozambique-based coal unit and is in the process of choosing a financial advisor to help it do so. The news follows Rio’s decision earlier this week not to sell its diamond unit.
The Wall Street Journal reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) is thinking of selling all or part of its Mozambique-based coal unit and is in the process of choosing a financial advisor to help it do so. The news follows Rio’s decision earlier this week not to sell its diamond unit.
As quoted in the market news:
Rio Tinto is seeking to bolster its balance sheet by divesting a range of noncore and poorly performing assets. Currently on the block are its aluminum assets, Canadian iron-ore and coal mine stakes and a copper-gold mine in Australia, among others.
If a minority-stake option is chosen, the buyer would share the project’s large capital-expenditure burden, one of the people said. If the entire coal unit is sold, it could fetch more than $700 million, another person said.
Click here to read the full report from The Wall Street Journal.