Rio Tinto to sell African coal assets

Rio Tinto has announced it will sell its coal assets in Mozambique to International Coal Ventures.

The sale US$ 50 million sale includes the Benga coal mine and other projects in the Tete province of Mozambique.

The transaction is expected in the third quarter of this year.

Last year the miner recorded a massive $2.8 billion write down on the African coal assets, which are believed to have contributed to the demise of former Rio CEO Tom Albanese.

This contributed to a non-cash impairment of around US$14 billion for its 2012 full year results, aiding impetus to the corporate reshuffle.

"These impairments include an amount of approximately US$3 billion relating to Rio Tinto Coal Mozambique (RTCM), as well as reductions in the carrying values of Rio Tinto’s aluminium assets (mostly Rio Tinto Alcan (RTA) but also Pacific Aluminium) in the range of US$10-11 billion," Rio Tinto said in a statement at the time.

The Mozambique assets are the only coal assets Rio Tinto operates outside of Australia.

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