Rio Tinto prepares to sell Coal & Allied to Yancoal Australia

Rio Tinto prepares to sell Coal & Allied to Yancoal Australia

Rio Tinto, the world’s second-largest supplier of iron ore said it will go ahead with the sale of Coal & Allied to Yancoal Australia.

It would be recalled that the planned sell off was announced on the 24th of January, 2017. The company said it will go ahead to finalise the deal as soon as ‘certain conditions being satisfied, and is expected to complete in the second half of 2017.

As a confirmation, Rio Tinto alluded to the fact that Yancoal announced receipt of Foreign Investment Review Board (FIRB) approval on 13 April 2017 for the transaction to go ahead.

For the first quarter of the year, Rio Tinto said that Pilbara iron ore shipments were 76.7 million tonnes in the first quarter (100 per cent basis). Ship loading was impacted by cyclone activity during the period, and sections of the rail network were affected by significant rainfall. Despite these disruptions, shipments were in line with the first quarter of 2016 and guidance for 2017 remains at 330 to 340 million tonnes.

First quarter bauxite production of 11.3 million tonnes and aluminium production of 889 thousand tonnes were both two per cent higher than the corresponding quarter of 2016.

Mined copper production was 37 per cent lower than the first quarter of 2016 due to a 43 day labour strike at Escondida. This strike, combined with the curtailment of production at Grasberg, has led to revised 2017 mined copper guidance of 500 to 550 thousand tonnes.

Titanium dioxide slag production increased by 35 per cent compared to the first quarter of 2016, reflecting higher market demand. 2017 production guidance has slightly increased to between 1.2 and 1.3 million tonnes.