LNC Linc Enrgy Fpo

   By Ross Kelly 
 

SYDNEY--Rio Tinto Ltd. (RIO.AU) said Thursday it has agreed to sell the Blair Athol coal mine in Queensland state to Linc Energy Ltd. (LNC.AU) as it reduces its exposure to smaller assets amid a slump in commodity prices.

Linc said it won't make an upfront payment to acquire the mine, which has been idled since November.

Rio, which owned 71.2% of Blair Athol, and minority joint venture partners have agreed to pay Linc an undisclosed sum to help it cover costs of rehabilitating the mine in future.

Brisbane-based Linc said it expects the acquisition to be finalized within six months and mining to recommence shortly after, with a view to producing up to 3 million metric tons of thermal coal used in power generation each year.

Write to Ross Kelly at ross.kelly@wsj.com

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