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Rio Tinto coal plans stalled by US trade watchdog

  •  29 May 2009
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Rio Tinto coal plans stalled by US trade watchdog

RIO Tinto has received a request from the US Federal Trade Commission (FTC) for additional information on the pending sale of its Jacobs Ranch coal mine to Arch Coal.

The mining company says that it will continue to work cooperatively with the FTC and respond expeditiously to this request. Completion of the transaction remains subject to the expiration of the waiting period under the Hart Scott Rodino Act.

On 9 March 2009, Rio Tinto announced it had reached an agreement to sell Jacobs Ranch to Arch Coal for a total cash consideration of US$761 million.

The Jacobs Ranch mine, located approximately 55 miles south of Gillette, Wyoming, extracts steam coal from the Wyodak Seams, using dragline and truck-and-shovel methods. It has approximately 381 million tons of proven and probable reserves at December 31, 2008.

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