Rio Tinto completes sale of wharf to LNG Canada

According to Mining News Pro -LNG Canada, a joint venture comprising Shell, Petronas, PetroChina, Mitsubishi Corporation and Kogas, entered into an option agreement with Rio Tinto in 2014 for various options to lease or purchase the wharf and areas of land.

Rio Tinto CFO Jakob Stausholm said in a statement on Monday that the sale demonstrated the company’s ability to generate cash from an existing asset, without losing future cash flow.

Rio Tinto will be using a replacement wharf for exports from its BC Works smelter, which produces 432 000 t/y of aluminium. LNG Canada will build the replacement wharf and has recently awarded a €95-million contract to BAM, JJM Construction and Manson Construction for the new 320 m by 60 m wharf.

BAM said last week that it would take 1.5 years to complete the project and that construction would start on final confirmation by LNG Canada.

LNG Canada in October announced a final investment decision for the $30-billion export facility.