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The Wall Street Journal reported that talks regarding the sale of Rio Tinto plc’s (ASX:RIO,LSE:RIO,NYSE:RIO) stake in the Queensland-based Clermont coal mine have stalled after bids from three different companies did not meet the mining giant’s expectations.
The Wall Street Journal reported that talks regarding the sale of Rio Tinto plc’s (ASX:RIO,LSE:RIO,NYSE:RIO) stake in the Queensland-based Clermont coal mine have stalled after bids from three different companies did not meet the mining giant’s expectations.
As quoted in the market news:
Adani Mining Pty. Ltd., the Australian unit of India’s Adani Enterprises Ltd., offered less than 850 million Australian dollars (US$792 million) for Rio Tinto’s stake in the Clermont mine in Queensland state, one of the people said.
Galena Private Equity Resource Fund also bid less than A$850 million for the 50.1% stake in the mine, which produces mostly coal for use in power generation, another person said. The fund is managed by Galena Asset Management, a subsidiary of Dutch trading house Trafigura Beheer BV.
New Hope Corp., one of Australia’s largest coal miners, also made an offer, a third person said. The company has more than A$1.2 billion in cash and term deposits on its balance sheet, largely compiled through the sale of its stake in coal-seam-gas producer Arrow Energy Ltd. in 2010.
Click here to read the full report from The Wall Street Journal.