Rio to sell Chapudi coal project

[miningmx.com] — Resources giant Rio Tinto has reportedly put its Chapudi coal exploration assets in South Africa up for sale.

According to various media reports, the group could fetch up to $75m for the assets.

Rio Tinto announced the discovery of a open-pittable coal resource of 1.04 billion
tonnes at Chapudi in the Limpopo Province in 2008.

While the coal is bituminous and is suitable for generating electricity, it now feels
the assets won’t yield coal suitable for the global market.

The Independent in the UK reported on Sunday that the group has invited bids for
the project with a preferred buyer in place.

The report noted that a sale was just one of the opportunities being pursued.

Rio Tinto has still to confirm the sale.