Yancoal plans US$2.5b equity raising for Rio Tinto coal mines

Sydney

CHINA-BACKED Yancoal Australia Ltd will raise US$2.5 billion in equity to fund the purchase of Rio Tinto Group's Australian coal assets, with its parent Yanzhou Coal Mining Co tipping in US$1 billion.

Glencore plc, which will jointly operate some of Rio's Coal & Allied operations in the Hunter Valley with Yancoal, will contribute US$300 million.

Two Chinese investment gro…