Rio Tinto’s $4.15 Billion divestments of its coal assets in Queensland

Allens has advised Rio Tinto on the recently announced series of divestments of its coal assets in Queensland for US$4.15 billion.

The transactions comprise binding agreements to sell Rio Tinto’s interests in the Hail Creek coal mine and Valeria coal development to Glencore for US$1.7 billion, its interest in the Winchester South coal development project to Whitehaven Coal for US$200 million, and its interest in the Kestrel underground coal mine to a consortium comprising EMR Capital and PT Adaro Energy for US$2.25 billion.

The sales represent the final steps in a staged sell-down of Rio Tinto’s Australian coal assets. Allens also advised on Rio Tinto’s sale of Coal & Allied Industries to Yancoal Australia for $US2.69 billion in 2017, the sale of its interests in the Bengalla mine and Mount Pleasant thermal coal assets in New South Wales to New Hope Corporation and MACH Energy for US$616 million and US$221 million respectively in 2016, and the sale of its interest in the Clermont coal mine in Queensland to Glencore and Sumitomo Corporation for US$1.015 billion in 2014.

Allens also advised on the reorganisation of the ownership structure of Coal & Allied Industries between Rio Tinto and Mitsubishi Development in 2016, which helped enable the New South Wales sales.

Rio Tinto plc is an international mining company. The Company has interests in mining for aluminum, borax, coal, copper, gold, iron ore, lead, silver, tin, uranium, zinc, titanium dioxide feedstock, diamonds, talc and zircon. Rio Tinto, led by Jean-Sebastien Jacques, Christopher James Lynch and Simon Trott, in 2017 recorded £3.109 Billion Revenues.

Allens advised Rio Tinto with a team including Richard Malcolmson (Picture), John Hedge (Partner), Michael Ryan (Partner), Richard Kriedemann (Partner), Michael Ilott (Partner), Tracey Davern (Senior Associate), Steven Local (Managing Associate), Glenys Hodges (Special Counsel), Ollie L’Estrange (Lawyer), Maggie Shelton (Lawyer), Amy Detheridge (Lawyer), Katherine McNamara (Lawyer), Pavel Zorin (Applied Legal Technology Senior Consultant), Christopher de Waas (Applied Legal Technology Project Analyst), Andrew Chiang (Applied Legal Technology Analyst)

 

Involved fees earner: Richard Malcolmson – Allens; Richard Kriedemann – Allens; Glenys Hodges – Allens; Steven Local – Allens; John Hedge – Allens; Michael Ryan – Allens; Michael Ilott – Allens;

Law Firms: Allens;

Clients: Rio Tinto Group;