The coal assets in the sale comprise the Benga coal mine, which started production in 2012, and other projects in the Tete province of Mozambique.

The assets were bought by Rio Tinto as part of its $A4 billion acquisition of Riversdale Mining in 2011.

In January last year, Rio announced a $US3 billion impairment on the assets and the departure of Doug Ritchie, who lead the acquisition.

The company replaced then-CEO Tom Albanese with current boss Sam Walsh the same day.

Rio Tinto expects the transaction to close in the third quarter of 2014.

Rio Tinto will continue to manage the Benga mine during the transition period.

The company’s other assets in Mozambique are not affected by the deal.