China's Yancoal grabs Rio Tinto’s coal mines in $2.45bn deal

Yancoal Australia Ltd., a subsidiary of China’s Yanzhou Coal Mining, has agreed to buy Rio Tinto’s thermal coal assets in Australia’s Hunter Valley for as much as $2.45 billion as the world’s second-largest miner speeds up plans to move away from the fuel.

The deal involves an initial payment of $1.95 billion, followed by further annual payments, taking the total price up to $2.45 billion. Yancoal also has an option to pay a single cash payment of $2.35 billion, Rio said.

"This sale delivers outstanding value for our shareholders and is consistent with our strategy of reshaping our portfolio to ensure the most effective use of capital," chief executive Jean-Sebastien Jacques said in the statement.

More to come…

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