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Rio Tinto to return coal sale proceeds in USD 3.2 billion buyback

Coal News - Published on Fri, 21 Sep 2018

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Australian Mining reported that Rio Tinto will return the sale proceeds of its Australian coal mines to its shareholders via a share buy-back. Mr Jean-Sebastien Jacques, Rio chief executive, said that “Returning USD 3.2 billion of coal disposal proceeds demonstrates our commitment to capital discipline and providing sector-leading shareholder returns. We continue to focus our portfolio on those assets which provide the highest returns and growth, which will ensure that we continue to deliver superior value to our shareholders in the short, medium and long term.”

The USD 3.2 billion disposal proceeds come from the sales of its Australian coal assets, including Hail Creek and Valeria (pre-tax USD 1.7 billion), Winchester South (pre-tax USD 0.2 billion) and Kestrel (pre-tax USD 2.25 billion) mines. The share buy-back program is made up of an off-market share buy-back of up to 41.2 million Rio shares (worth around USD 2.7 billion) and further on-market purchases of Rio shares this year.

Rio’s existing buy-back programs, totalling USD 1.7 billion in shares, remain to be purchased and will be completed by February next year.

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Posted By : Rabi Wangkhem on Fri, 21 Sep 2018
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