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Rio may sell Chapudi coal assets

Rio Tinto “’ may sell
Chapudi coal assets
in South Africa
Johannesburg, South Africa — MININGREVIEW.COM — 12 July 2010 – Rio Tinto plc “’ one of the world’s leading mining and exploration companies “’ is considering selling its Chapudi coal exploration assets in the Limpopo province of South Africa.

Revealing this here, a source close to the company said Rio Tinto was considering selling the assets as they would not yield coal suitable for the global market “Rio Tinto’s coal strategy is focused on internationally traded markets,” the source added, “and Chapudi is better suited as a domestic project.”

Meanwhile the Independent on Sunday reports that the company has invited bids, and has a preferred buyer in place for the assets, which could fetch up to US$75 million (R562.5 million).

Rio Tinto and its partner Kwezi Mining discovered the 1.04 billion-tonne coal resource in 2008.