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Rio Tinto to Sell Mozambique Coal Assets for $50 Million

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posted on Jul, 30 2014 @ 04:11 PM
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I just picked this up on the morning news:
online.wsj.com...


SYDNEY— Rio Tinto RIO.LN -1.18% PLC has agreed to sell its Mozambique coal assets to an Indian investment group for $50 million, marking the end of one of the mining giant's costliest deals during the commodities boom.



Rio acquired the troubled coal business in 2011 through its $3.7 billion takeover of Riversdale Mining Ltd., as coal prices were rocketing on ballooning demand from Asia and supply disruptions in major coal-producing countries.




International Coal Ventures Private Ltd. has agreed to buy the business that, alongside the 2007 acquisition of Alcan Inc., was one of two ill-timed acquisitions by Rio that led to last year's departure of former Chief Executive Tom Albanese.


af.reuters.com...



LONDON/SYDNEY, (Reuters) - Rio Tinto has agreed to sell coal assets it bought through a $4 billion acquisition of Riversdale in 2011 for just $50 million to an Indian joint venture, ending its ill-fated venture in Mozambique's coal sector.


Is this a definitive sign for the coming of the economic bubble burst that we have been warned about?
one must wonder.
edit on 30-7-2014 by PLAYERONE01 because: (no reason given)
edit on 30-7-2014 by PLAYERONE01 because: (no reason given)




posted on Jul, 30 2014 @ 05:49 PM
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originally posted by: PLAYERONE01
I just picked this up on the morning news:
online.wsj.com...





International Coal Ventures Private Ltd. has agreed to buy the business that, alongside the 2007 acquisition of Alcan Inc., was one of two ill-timed acquisitions by Rio that led to last year's departure of former Chief Executive Tom Albanese.





 


the Mozambique coal operation to India makes sense...

but I question the full story of the Alcan inc. business (likely also in Mozambique) see linked page...
www.riotintoalcan.com...

Alcan there is listed as a Ancillary Business

getting rid of non-performing operations is a necessity--- even if it is over a $3 billion loss...much of the loss will be beneficial, that's what the bevy of accountants & lawyers do to earn their paychecks



posted on Jul, 31 2014 @ 10:47 AM
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a reply to: PLAYERONE01

Maybe Rio Tinto is just moving into iron across the continent to West Africa?


Rio Tinto, Guinea seal deal on $US20 billion Simandou mine

A LANDMARK agreement has brought an end to three years of contractual wrangling over how best to develop Africa’s biggest mining project, a $US20 billion iron-ore deposit nestled in the remote forests of Guinea.

But even though thisa week’s deal resolves years of contractual uncertainty, it sets a new challenge: Finding deep-pocketed investors willing to spend tens of billions of dollars building the railroad and port needed to make the huge deposit economically viable.

For months, Rio Tinto and its partners Aluminum Corp of China, or Chalco, and the International Finance Corp, the private-sector arm of the World Bank, have been in talks with President Alpha Condé’s reformist government to figure out a way for the Simandou mine to be financed and executed.

Rio Tinto currently holds a license to mine around half of the deposit, around $US10 billion worth of iron ore at current prices. The infrastructure and mining project will cost an estimated $US20 billion to build, of which two-thirds is infrastructure costs.
edit on 31/7/14 by soficrow because: (no reason given)





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