5 Aug 2016 07:00
Rio Tinto completes sale of Mount Pleasant thermal coal assets
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5 August 2016
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Rio Tinto has completed the sale of its Mount Pleasant thermal coal assets to MACH Energy Australia Pty Ltd for US$220.7 million plus royalties.[1]
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Rio Tinto has now completed US$4.7 billion of divestments since January 2013.[2]
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Media Relations, EMEA/AmericasIlltud Harri T +44 20 7781 1152 M +44 7920 503 600 Â David Outhwaite T +44 20 7781 1623 M +44 7787 597 493 Â David Luff T +44 20 7781 1177M +44 7780 226 422 Â Investor Relations, EMEA/AmericasJohn Smelt T +44 20 7781 1654 M +44 7879 642 675 Â David Ovington T +44 20 7781 2051 M +44 7920 010 978 Â Grant Donald T +44 20 7781 1262 M +44 7920 587 805 | Media Relations, Australia/AsiaBen Mitchell T +61 3 9283 3620 M +61 419 850 212 Â Bruce Tobin T +61 3 9283 3612 M +61 419 103 454 Â Matthew Klar T +61 7 3625 4244 M +61 457 525 578 Â Investor Relations, Australia/AsiaNatalie Worley T +61 3 9283 3063 M +61 409 210 462 Â Rachel Storrs T +61 3 9283 3628 M +61 417 401 018 Â Â |
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Rio Tinto plc6 St James's Square London SW1Y 4AD United Kingdom  T +44 20 7781 2000Registered in England No. 719885 | Rio Tinto Limited120 Collins Street Melbourne 3000 Australia  T +61 3 9283 3333 Registered in Australia ABN 96 004 458 404 |
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[1]Â The sale agreement has been amended to bring forward two payments originally scheduled eight and 16 months after completion. The agreement now includes a single payment on completion of US$195.7 million, a conditional payment of US$25 million, and royalties, payable quarterly at two per cent of Gross FOB Revenue for coal sold from existing reserve estimates at prices exceeding US$72.50/tonne. This new agreement sees the total unconditional payments decrease by approximately $3.3 million. The proceeds of the sale will be used for general corporate purposes. As of 30 June 2016, the project had gross assets valued at US$137 million and year to date profits of US$243,000.
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[2]Â Amount is before finalisation of net debt and working capital adjustments.
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Rio Tinto (RIO)