Rio hires UBS on Mozambique sale

Rio Tinto has appointed UBS to advise on the sale of its troubled Mozambique coalmines, according to Bloomberg, amid growing political turmoil in the region. Rio is looking to sell all or part of the Zambeze Project and the Tete East Project. “Any outcome in this regard would be a positive for us as our analyst carries no value for the Mozambique assets,” commented broker Investec. “Unfortunately it is still in Rio’s books at around $1bn (£655m), after a $3bn impairment earlier this year. Rio’s most likely option would be a joint venture.”