Rio Tinto has reached an agreement to sell Rio Tinto Coal Mozambique, which comprises the Benga coal mine and other projects in the Tete province of Mozambique, to International Coal Ventures Private Limited (ICVL) for US$50 million.
The assets were acquired by Rio Tinto as part of its acquisition of Riversdale Mining Limited in 2011.
The sale is subject to certain conditions precedent and regulatory approvals. The transaction is expected to close in the third quarter of 2014.
During the transition to the new owner, Rio Tinto will continue to manage the mine to the highest safety and environmental standards. Rio Tinto’s other assets in the country are unaffected by this transaction.
ICVL is a joint venture company incorporated in India and set up by the mandate of the Government of India exclusively for the purpose of the acquisition of coal mines and coal assets in overseas territories, primarily to meet the coal requirements of the promoter companies of ICVL. The promoter companies of ICVL are also amongst the largest Government of India owned entities: Steel Authority of India Limited, Coal India Limited, Rashtriya Ispat Nigam Limited, National Minerals Development Corporation Limited and National Thermal Power Corporation Limited.