RIO Tinto will wait for the right price to shed some of its U.S coal assets, according to the chief executive of its energy and minerals unit.
Rio has put four out of its five U.S coal mines up for sale, but has had no buyers for over 12 months. Rio Tinto Energy America (RTEA) operates five open-pit coal operations in the western United States, producing approximately 120Mt of coal per annum.
Chief executive, Preston Chiaro, says Rio will keep hold of the mines as the financial meltdown has created difficulties for buyers hoping to secure cash to purchase assets.
Rio plans to sell assets and restructure its global operations to pay off more than $38bn in debts.
However, Chiaro says negotiations have been postponed due to poor market conditions and the company will not sell the U.S coal mines for a “bargain price”.
Chiaro has also rejected claims the miner may sell its 76% stake in Australia’s Coal Allied Industries.
“We are very happy with our position and are not looking to sell,” he said.
As thermal coal prices continue to fall amid the global slowdown, Chiaro says the market fundamentals have now shifted in favour of buyers.
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