Sale is part of Rio’s planned exit from Australian coal to focus on iron ore, copper and aluminum.
Yancoal Mining News
Decision comes as the Swiss-based miner and commodities trader rethinks how to deploy capital as its cuts debt.
Former rival bidder Glencore will subscribe to $300 million worth of the rights offer.
The Anglo–Swiss multinational announced that it signed agreements with Yancoal Australia regarding the acquisition of a 49 per cent interest in Rio Tinto’s former coal assets in Australia's Hunter Valley
The approval ends a three-week bidding war between Yancoal and Glencore over Rio's thermal coal assets in Australia.
The company has chosen to sell its Hunter Valley coal mines to China-backed Yancoal, but shareholders will decide.
Fresh bid is far better than the $2.55bn it offered earlier this month and considerably more than the $2.45bn offered by Yancoal, the Chinese-backed miner that is Rio’s preferred buyer.
The acquisition would make of Yancoal Australia’s largest pure-play coal producer.
Chinese-owned Yancoal has signalled it may raise its bid for Rio Tinto's Hunter Valley coal assets, after striking the agreement with Mitsubishi to buy its stakes in the same mines.