SYDNEY—Rio Tinto PLC has agreed to sell its stake in a large Australian coal mine for US$606 million and overhaul the ownership structure of its Coal & Allied unit, amid a global slump in prices of the commodity.

On Wednesday, Rio Tinto said it has agreed to a binding deal to sell its 40% stake in the Bengalla coal mine in eastern Australia's New South Wales state to New Hope Corp. It expects the sale of the mine, which produced 8.6 million metric tons of coal last year, to close in the first quarter of 2016.

"This sale will deliver value for our shareholders as we remain focused on continuing to develop the strongest core portfolio of assets in the mining industry," said Jean-Sé bastien Jacques, chief executive of Rio Tinto's copper and coal division. "It demonstrates our commitment to further strengthening our balance sheet, maintaining a disciplined approach to allocating capital across the Group, and delivering strong returns for shareholders through the cycle."

Rio Tinto also said it has taken full control of its Coal & Allied unit, which operates mines in the Hunter Valley region of New South Wales, from Japanese trading house Mitsubishi Corp.

Mitsubishi will effectively swap its 20% stake in Coal & Allied for a direct 32.4% stake in the Hunter Valley Operations mine, Rio Tinto said in a statement.

Write to David Winning at david.winning@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

September 29, 2015 21:15 ET (01:15 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
New Hope (ASX:NHC)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more New Hope Charts.
New Hope (ASX:NHC)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more New Hope Charts.