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Rio Tinto sells coal mine for A$1 as industry struggles

Staff writer |
Mining giant Rio Tinto sold its interest in a coal mine in Australia for A$1 as the commodity market continues to struggle.

The mine was sold for less than the price of a cup of coffee, the Financial Times reported.

Rio Tinto CEO said he wants to grow the company by building and buying assets and expanding its net for commodities for the company to grow.

The minerals industry is seeing a downturn in world commodity markets which has extended into its fifth year. Thermal coal prices have fallen from about $180 per tonne in 2008 to just over $50 due to overproduction and a drop in demand from China.

The Anglo-Australian mining company said it was in negotiations with Terracom, a smaller mining company, over its joint venture in Blair Athol thermal coal mine in Queensland. In 2012 Rio Tinto shut down the mine as coal prices fell.

The company also relinquished its stake in a Papua New Guinea copper mine last week.

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