The Rio Tinto group’s coal project in Mozambique will remain a group asset and there is no intention to sell it despite a write down of US$3 billion in its book value, said the group’s chief executive Sam Walsh.
Walsh, who has replaced Tom Albanase as the group’s CEO, gave assurances that Rio Tinto would continue to work on judging the economic shape of the project.
Cited by Dow Jones Newswires, Walsh said that the Tete province project was not included in the group’s divestment programmes.
The Rio Tinto group acquired the coal project after paying US$3.7 billion to buy Australian group Riversdale Mining, which had the concession in Mozambique’s Tete province.
At the time other large mining groups, such as Anglo American, did not take part in the race to buy Riversdale Mining due to the known logistics problems to transport the coal from where it is mined to Mozambique’s ports for export. (macauhub)