Routers reported that Rio Tinto Limited subsidiary Coal & Allied Industries Limited has entered into a deal to sell its undeveloped Maules Creek coal project in NSW's Gunnedah Basin to a private Australian mining investment company for about USD 480 million in cash.

Coal & Allied said that Brisbane based Aston Resources Private Limited had agreed to buy the asset.

Mr Bill Champion MD of Coal & Allied said that the Maules Creek coal project did not form part of Coal & Allied's short term or medium term development plans. The company will make a net profit of about USD 340 million from the transaction.

The company said that it would consider how best to apply the proceeds of the sale and would provide further information once the deal has been completed, which is expected in early 2010. "Completion of the transaction remains subject to customary closing conditions including regulatory approvals."

(Sourced from Reuters)