Global miner Rio Tinto says it will receive total proceeds of at least $US741 million in connection with the recent initial public offering (IPO) of Cloud Peak Energy Inc, and related transactions.
Cloud Peak Energy Inc, the third largest coal producer in the United States, started trading on the New York Stock Exchange last week.
Rio said in a statement late on Friday that it would receive proceeds of at least $US434 million from the sale of part of its interest in Cloud Peak Energy Resources LLC (CPER) in connection with Cloud Peak Energy Inc's share offering.
Rio would also receive a cash distribution by CPER of $US307 million ($A333.91 million) from the proceeds of its debt offering of $US600 million ($A652.6 million).
Rio expects to retain an interest in CPER of at least 48 per cent.
The transactions are expected to close on November 25.
"The successful pricing of Cloud Peak Energy Inc's debt offering and its fully subscribed IPO has proved that the IPO route was the best option for divesting those assets," Rio Tinto chief financial officer Guy Elliot said in a statement.
Since February 2008, Rio Tinto has announced asset sales of $US8.3 billion ($A9.03 billion), including the sale of its stake in CPER.
Rio Tinto plc announced in August 2008 that it was considering listing its North American coal assets on the New York Stock Exchange.
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