Rio Tinto Limited [ASX:RIO] are gaining everything they can out of this seemingly never-ending mining boom.
Rio’s shares have once again grown, this time by 2.37%.
Rio’s most recent growth stems from its recent business transaction involving the sale of its interest in the Winchester South coking coal project.
The deal is valued at $200 million.
With Rio Tinto exiting the coal industry, this sale comes as an act of convenience to aid its ongoing business plans.
Completing its departure from the coal industry
The coal mine transaction marks its third sale in just over a week’s time.
Most of its transactions consist of coal projects.
With Rio Tinto leaving the coal industry, they have gone through hoops to ensure they have room to focus on its relevant projects.
CEO Jean-Sebastien Jacques stated that the miner’s portfolio will be in a more stable and focused state after its coal assets are sold.
Now the mining company can primarily focus on iron ore, aluminium, copper and bauxite.
Abc.net reported that chief executive of the Responsible Investment Association Australasia sated:
‘It shifts Rio into a position where some of those investors who may have restrictions around coal will now be in a position to consider investing in Rio Tinto again, certainly within our membership, there’ll be a lot of investors assessing the implications of this for Rio and their own portfolios, and they’ll be monitoring that divestment process over a number of months.’
Funds from the recent sales will be used for general corporate purposes.
Being a large company, Rio Tinto must make the correct decisions in order to allow them to properly allocate its productivity in the right areas.
They know which areas they must focus on in order to gain the most amount of profit.
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