Rio Tinto has reached an agreement to sell Rio Tinto Coal Mozambique, which consists of the Benga coal mine and other projects in the Tete province of Mozambique, to International Coal Ventures Pvt. Ltd. (ICVL) for $50 million. Rio Tinto acquired the assets for $3.7 billion when it purchased Riversdale Mining Ltd. in 2011. The sale is subject to certain conditions precedent and regulatory approvals. The transaction is expected to close in the third quarter of 2014. During the transition to the new owner, Rio Tinto will continue to manage the mine.
ICVL is a joint venture company incorporated in India and set up by the mandate of the government of India exclusively for the purpose of the acquisition of coal mines and coal assets in overseas territories.