LONDON (dpa-AFX) - Rio Tinto (RIO) announced that it has entered into binding agreement with Whitehaven Coal Limited (WHC.AX) for sale of its entire 75 per cent interest in the Winchester South coal development project in Queensland, Australia, for $200 million.
Rio Tinto expects completion of Whitehaven Coal transaction to occur in the second quarter of 2018.
Rio Tinto said that the total consideration is comprised of $150 million payable to Rio Tinto by Whitehaven on the date of completion and a further unconditional payment of $50 million payable 12 months after the date of completion.
In addition, Rio Tinto stated that there is a separate process remains underway to sell its remaining Australian coal assets.
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