Rio Tinto is selling its Mount Pleasant thermal coal assets in the Hunter Valley to MACH Energy Australia for $US224 million ($320 million) plus royalties.
The mining giant has gathered $US830 million in recent coal asset sales. In September, Rio announced the sale of its 40% interest in the Bengalla coal joint venture to New Hope Corporation Limited for $US606 million ($864 million).
Rio Tinto has announced or completed $US4.7 billion ($6.7 billion) in asset sales in two years, part of its strategy to strengthen its balance sheet in a low commodity price world.
The big miner has been cutting costs, increasing ore output, pulling back on capital spending and cutting debt.
Jean-Sébastien Jacques, Rio Tinto Copper and Coal chief executive, says the latest sale is subject to certain conditions, including completion of the restructure of Coal and Allied and regulatory approvals.
Rio Tinto manages Coal and Allied’s coal operations in the Hunter Valley region of New South Wales. The operations include Mount Thorley Warkworth, Hunter Valley Operations and Bengalla.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.