The opencut mine has been operated by Xstrata under the 50:50 joint venture between Ravensworth Operations, a wholly owned subsidiary of Xstrata Coal, and Iluka Resources.

Iluka expects its profit on the sale to be $30 million, which will be included in its 2008 results.

Iluka managing director David Robb said proceeds from the sale would be used to support new growth projects in its minerals sands business, namely the Murray Basin Stage 2 development in Victoria/NSW and the Jacinth-Ambrosia zircon project.

Xstrata Coal chief executive Peter Coates said upon announcement of the purchase in August that it was another step forward in consolidating Xstrata's Hunter Valley interests.

Iluka was trading mid-morning at $4.52.