SYDNEY--Rio Tinto PLC (RIO.AU) is poised to sell its Blair Athol coal mine in eastern Australia to Linc Energy Ltd. (LNC.AU), a person familiar with the matter said Wednesday.
Discussions between the parties are at an advanced stage and a deal could be announced as soon as Thursday, the person said. Financial terms of the deal aren't known.
International mining companies like Rio are selling smaller or less-profitable assets to boost shareholder returns amid a slump in prices of commodities like coal.
Rio Tinto closed the Blair Athol operation in Queensland state in November after it decided not to extend its mining life. The mine produced coal since 1984.
LNC Price at posting:
$1.26 Sentiment: None Disclosure: Held
