Rio Tinto (RIO.AX) (RIO.L) sold its remaining coal asset Kestrel in Australia to private equity manager EMR Capital and Indonesia’s Adaro Energy Tbk (ADRO.JK) for $2.25 billion, the major said on Tuesday, making good on a pledge to exit the fuel.
The sale is Rio’s third coal deal this month. In total, the assets have raised $4.15 billion, which it said would be used for “general corporate purposes.”
CEO Jean-Sebastien Jacques said in a statement the latest sale, combined with Glencore’s (GLEN.L) purchase of Hail Creek mine and the divestment of undeveloped coal projects would make Rio’s portfolio stronger and more focused.
Tuesday’s deal to sell Rio’s 80 percent stake in the underground coal mine in Queensland, Australia, is subject to regulatory approvals and is expected to be completed in the second half of 2018.
Rio’s share price was up 2.1 percent by 1400 GMT, roughly in line with the broader index.