China owned Shenhua Group Corp Ltd. and Aditya Birla Group are among other interested firms eyeing for a bid over Rio Tinto's Australian coal mines. The estimated value for said mines is at US$3.2 billion. This was according to people having knowledge with said proposals told Reuters.
Among its assets, the coal stakes at Rio is offloading as the new CEO of the company Sam Walsh is looking to increase its funds. This will aid to cut the firm's US$26 billion debt and protect the single "A" rating of Rio.
A 29% stake is being sold by Rio Tinto in its Coal & Allied business and a majority stake in the Queensland state, Clermont mine. The initial bid is said due this week according to one source familiar with the matter.
Another potential bidder, Coal India Ltd. is expected to participate in the deal.
The three companies refused to give comment regarding the bid. Shenhua did not give statements regarding the report. Sources wished not to be named as the process of the sale is not public.
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