London/Melbourne — Global miner Rio Tinto sold its remaining coal mine in Australia for $2.25bn, making good on a pledge to exit the fuel and boosting its ability to fund future buybacks or higher dividends. The sale of Rio’s stake in the Kestrel mine to private equity manager EMR Capital and Indonesia’s Adaro Energy was made at a premium to analysts’ expectations and was Rio’s third coal deal in March. In total, the assets have raised $4.15bn. Rio said the funds would be used for "general corporate purposes", which may include increased returns for shareholders. CEO Jean-Sebastien Jacques said the latest sale, combined with Glencore’s purchase of the Hail Creek mine and the divestment of undeveloped coal projects, would make Rio’s portfolio stronger and more focused. RBC said in a report the sale would make Rio Tinto the only mining major without coal assets, which should boost its allure to some investors. The divestments would boost the miner’s balance sheet by $3.9bn, RBC said, ...
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