Rio Tinto Explores Options for RTEA



A coal train departs RTEA’s Cordero Rojo complex in Wyoming.
When Rio Tinto announced its acquisition of Alcan, it also announced that a strategic review of all the assets of the enlarged group would be undertaken. As part of that review Rio Tinto has decided to explore the option to sell some or all of Rio Tinto Energy America (RTEA) its wholly-owned U.S. business unit that is the second largest U.S. coal producer by tonnage.

“Rio Tinto Energy America is a leader within the U.S. coal industry in terms of safety and operating performance. However, it is not positioned to take advantage of the rapidly growing Asian market, particularly China, which Rio Tinto is focusing on,” said Colin Marshall, president and CEO, RTEA. “Rio Tinto recognizes that coal will continue to play a vital role in meeting U.S. energy needs both now and in the future. One of the reasons for exploring the sale of RTEA is that due to the current positive outlook for western coal in the U.S., it is a valuable business. The sale review process will take some months. During that time, RTEA will be focused on running the mines safely and efficiently, as always.” RTEA operates five coal mines in Colorado, Montana and Wyoming.


As featured in Womp 07 Vol 8 - www.womp-int.com