Australian miner Rio Tinto has reached an agreement whereby it may purchase a coal mine project being developed in the Bowen Basin area of eastern Australia, as stated by project owner Australia Pacific Coal Company,.
According to Australia Pacific Coal Co., the exploration division of Rio Tinto has signed a non-binding letter of intent to assume financial and technical risks in examining the coal potential of the Mt Hillalong project in Bowen Basin, as part of an agreement which could see it acquire or enter a joint venture for the project. If Rio Tinto does not exercise an option to buy into the project, Australia Pacific will retain whole ownership.
Australia Pacific owns 16 exploration permits in the Bowen and Surat Basins in the Australian state of Queensland.