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Rio’s Clermont mine sale stalls

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Rio Tinto is reportedly fielding low ball offers for its Central Queensland Clermont coal mine.

The Wall Street Journal reports three offers have been made for Rio’s 50.1 per cent stake in the operation, including the Indian owned Adani Enterprises, Dutch trading house Trafigura and Australian coal mining company New Hope Corporation.

The three separate offers are reportedly below the $AU850 million mark and lower than Rio’s expectations fuelling reports talks are being stalled and the sale will be put on hold.

Reports emerged in April that Rio was looking to sell its interests in the Clermont and Blair Athol thermal coal mines in Queensland for around $1 billion.

The mining giant hired Deutsche Bank to handle the sales, as the company moves to cut about $5 billion worth of costs and boost shareholder returns.

In June Australian Mining reported the miner was close to finalising the sale of a number of its coal assets including 29 per cent of Rio’s 80 per cent stake in Coal & Allied, and the company’s majority stake in Clermont and Blair Athol mines.

Clermont mine came online in 2010 and is expected to supply up to 177 million tonnes of thermal coal over a 17 year mine life.

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