Rio Tinto increases coal reserve estimate for Kestrel Mine
Rio Tinto said it has increased its estimate of coal reserves by 50 percent at the Kestrel Mine in the Australian state of Queensland.
The company increased the estimates at the mine at 185 Mt (204 million st) from 123 Mt (135 million st). Rio Tinto is reportedly looking to sell the mine.
Reuters reported in May that the miner planned to sell its Kestrel and Hail Creek mines in coal-rich Queensland as part of a full exit from Australian coal to focus on iron ore, copper and aluminum.
The new estimates followed “rigorous examination of leases that included an updated geological model, updated mine layout, revised coal product classifications and revised loss and dilution and productivity assumptions,” Rio said in a statement.
Rio Tinto has an 80 percent stake in Kestrel. It is yet to formally announce a sale, but has already attracted scores of interested buyers, according to sources familiar with the situation.
Analysts expect each of the mines to sell for more than $2 billion.