Rio Tinto has signed an agreement to divest its 40% stake in the Bengalla coal mine in Australia to coal producer New Hope for A$865m ($606m).
The Bengalla is Rio Tinto’s smallest of three coal mines located in the Hunter Valley of New South Wales.
With the deal, the firm has announced or completed assets sale worth $4.5bn since January 2013.
Rio Tinto Copper & Coal CEO Jean-Sébastien Jacques said: "This sale will deliver value for our shareholders as we remain focused on continuing to develop the strongest core portfolio of assets in the mining industry.
"Bengalla mine is a robust, well-managed business with a productive workforce and we believe it will have a positive future under the new owner with different capital allocation priorities.
"We expect the business to make a significant and ongoing contribution to the New South Wales economy."
The sale, which is expected planned to be completed in the first quarter of 2016, comes amidst slump in coal prices due to oversupply and contracting demand in China, which used to be biggest consumer of the commodity.
In a bid to simplify ownership structure Rio Tinto recently signed an agreement to acquire 100% stake in its unit Coal & Allied, which operates Mount Thorley Warkworth, Hunter Valley Operations and Bengalla and Mount Pleasant projects in Australia, from Mitsubishi Development.
Under the terms of this deal, Mitsubishi agreed to sell its 20% stake in Coal & Allied to Rio Tinto in exchange for a direct 32.4% interest in the Hunter Valley Operations mine.
Upon completion of the deals, Rio Tinto will have 67.6% interest in the Hunter Valley Operations with management rights; 80% with management rights in Mount Thorley, 55.6% in Warkworth operations with management rights as well as 100% stake in the Mount Pleasant project.
Image: Rio Tinto operates the Bengalla coal mine in Australian through its unit Coal & Allied. Photo: Copyright © 2014 Rio Tinto.