Rio Tinto Share Price Grows Due to Selling off Multi-Million Dollar Coal Mine

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.

Regards,

Ryan Clarkson-Ledward,
For Markets & Money

PS: 2018 Mining Boom: Could these cheap, top-quality Aussie mining stocks lead this year’s commodities comeback? Find out in the free report ‘Top 10 Mining Stocks for 2018here.


Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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