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Allens advises Rio Tinto on hat-trick of mine sales

31 October 2012

Allens has advised longstanding client Rio Tinto on the sale of its controlling interest in the Clermont Joint Venture to GS Coal Pty Ltd, which is jointly owned by Glencore Xstrata and Sumitomo Corporation.

Under the terms of the sale, Rio Tinto will sell its 50.1 per cent stake for US$1.015 billion, and Glencore Xstrata will take over management of the Clermont mine, which produces thermal coal in central Queensland.

Completion of the sale is subject to agreement from Rio Tinto's joint venture partners, Mitsubishi Development Pty Ltd, J-Power Australia Pty Ltd and J.C.D. Australia Pty Ltd, on certain matters, as well as certain other conditions precedent.

The transaction is expected to close in the first quarter of 2014.

According to Partner Richard Malcolmson, who led the Allens team on the deal, the sale of Rio Tinto's interest in the Clermont Joint Venture brings the value of Rio Tinto's announced or completed divestments this year to US$2.915 billion.

'In addition to the Clermont transaction, we have advised Rio Tinto on the recently-announced agreements for the sale of its interest in the Northparkes mine, for US$820 million, and its interest in the inactive Blair Athol mine, which is adjacent to Clermont,' Mr Malcolmson said.

'Allens is very pleased to continue to work with Rio Tinto on its major strategic transactions,' Mr Malcolmson said.

Allens legal team Richard Malcolmson (Partner – Sydney), Erin Feros (Partner – Brisbane), Glenys Hodges (Special Counsel – Brisbane), Steven Local (Senior Associate – Sydney), Ben Smallwood (Senior Associate – Brisbane), John Hedge (Senior Associate – Brisbane)

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Notes for editors.

Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 39 offices in 28 countries around the world.