Rio Tinto Announces Asset Sale For $224 Million, Notes Transaction Will 'Deliver Significant Value' For Shareholders

Shares of Rio Tinto plc (ADR) RIO were trading lower by around 1 percent on Wednesday despite the company's announcement of an asset sale.

Rio Tinto said in a press release it has reached an agreement to sell its Mount Pleasant thermal coal assets to MACH Energy Australia Pty Ltd for $224 million and additional royalties.

Rio Tinto added that when combined with the sale of its interest in the neighboring Bengalla coal Joint Venture, the sale proceeds amounts to $830 million. The company also noted it has announced and/or completed $4.7 billion worth of divestments since January 2013.

Rio Tinto Copper & Coal chief executive Jean-Sébastien Jacques said "These agreements for over US$800 million in asset sales deliver significant value for our shareholders, with the potential for future royalties from Mount Pleasant.