Rio Tinto considers IPO for US coal assets

LONDON: Rio Tinto PLC said Friday that it is considering listing its North American coal assets on the New York Stock Exchange as Cloud Peak Energy Inc.

Anglo-Australian Rio Tinto, which is fending off a takeover approach from fellow miner BHP Billiton Ltd., filed plans with the US Securities and Exchange Commission for an initial public offering worth up to US$1 billion.

However, Rio Tinto added that it is still deciding whether to pursue a listing or a different form of divestment. A final decision would be made ``once these options have been more fully explored,'' it said in a statement.

Rio Tinto said in November it was exploring the possible sale of some or all of its US coal assets to help pay debt used to purchase Canada's Alcan.

``We are in active discussions with a number of prospective buyers who have expressed strong interest in those coal assets,'' chief financial officer Guy Elliott said in a statement Friday.

The SEC filing did not reveal the number of shares the company planned to sell or their expected price.