GS Coal is a company jointly owned by Anglo-Swiss multinational mining firm Glencore Xstrata and Japanese general trading firm Sumitomo.
Under the deal, Glencore will acquire management of Clermont Mine, which produces thermal coal in central Queensland.
Additionally, Glencore and Sumitomo will each hold a 25.05% effective economic interest in the mine.
Glencore’s head of coal assets Peter Freyberg said: "As well as being Australia’s third largest thermal coal mine, Clermont is structurally low cost, with its through-cycle profitability underpinned by its low 3.2:1 life-of-mine strip ratio and the ability to bypass 90% of coal without washing."
Subject to regulatory approvals, the transaction is due to be completed in the first quarter of 2014.
Rio Tinto chief financial officer Chris Lynch said the Clermont is expected to continue to perform better under its new ownership and make an ongoing contribution as a member of the local community.
"Rio Tinto remains committed to a long-term future in central Queensland. Production has recently commenced from the US$2bn extension of the Kestrel Mine and studies are currently underway to extend production from the Hail Creek Mine," Lynch added.
