Credit Suisse set to handle sale of $2 billion of Rio Tinto coal assets

Rio Tinto is to use Credit Suisse to sell two coal mines in Queensland worth up to $2 billion, it has been reported.

According to The Australian newspaper, Rio has selected the Swiss-based bank to handle the sale of its coking assets in the area.

Rio is understood to be preparing to sell its Kestrel mine, 40km northeast of Emerald in central Queensland, and its Hail Creek Mine, 120km southwest of Mackay in central Queensland.

Kestrel mine focuses on aluminium and iron ore while Hail Creek supplies hard coking and thermal coal.

A number of banks including Bank of America Merril Lynch are reported to have pitched for the role.

Rio recently agreed a deal to sell its thermal coal mines in the Hunter Valley to Chinese state-owned company Yancoal for $3.2 billion, although the sale is not yet finalised.

The deal with Credit Suisse comes after the bank recently secured a joint lead manager role with Macquarie Capital and Goldman Sachs to float Quadrant Private Equity’s Super Amart furniture company.