Don’t miss the latest developments in business and finance.

China, Indian suitors said to eye bids for Rio Australia coal mines

Image
Reuters MUMBAI/HONG KONG
Last Updated : Jun 11 2013 | 8:05 AM IST

MUMBAI/HONG KONG (Reuters) - China's state-owned Shenhua Group Corp Ltd and Aditya Birla Group are among the companies considering bids for Rio Tinto's Australian coal assets, which have an estimated value of $3.2 billion, people familiar with the matter told Reuters.

The coal stakes are among a string of assets Rio is offloading as its new chief executive, Sam Walsh, seeks to raise funds to help cut the company's $26 billion in debt and protect its single-A credit rating.

Rio Tinto is selling a 29 percent stake in its Coal & Allied business and its majority stake in the Clermont mine in Queensland state, with preliminary bids due this week, one person with direct knowledge of the matter said.

State-run Coal India Ltd , the world's largest coal producer, is also expected to bid, the person said.

Rio Tinto, Aditya Birla Group and Coal India declined to comment, while Shenhua was not available for a comment. Sources declined to be identified as the sale process is confidential.

(Reporting by Sumeet Chatterjee and Denny Thomas; Additional reporting by Sonali Paul in Melbourne and Prashant Mehra in Mumbai; Editing by Paul Tait)

Also Read

First Published: Jun 11 2013 | 7:50 AM IST

Next Story