Yancoal said it will start standing down employees, and is aiming to redeploy most workers to other underground operations owned by the company.
Yancoal Mining News
Sale is part of Rio’s planned exit from Australian coal to focus on iron ore, copper and aluminum.
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.