REFILE-UPDATE 3-Rio Tinto pulls plug on ill-fated Mozambique coal venture
(Refiles to fix dateline and byline)
* Rio's exit frustrates Mozambique's coal ambitions
* Asset sale price implies further writedown
* Vale also looking to sell stake in Mozambique coal assets
* Mozambique bets on India's growing demand for coal
By Silvia Antonioli and James Regan
LONDON/SYDNEY, July 30 (Reuters) - Rio Tinto has agreed to sell coal assets it bought through a $4 billion acquisition of Riversdale in 2011 for just $50 million to an Indian joint venture, ending its ill-fated venture in Mozambique's coal sector.
The sale of Rio Tinto Coal Mozambique to International Coal Ventures Private Limited (ICVL), includes the Benga coal mine and other projects in Tete province, assets that had a value of $71 million as of March 31 in Rio's books.
In 2013, Rio Tinto sacked its chief executive and other executives directly involved in the acquisition of Riversdale and wrote off about $3.5 billion of the purchase price, partly owing to a failure to secure a permit to move coal by barge down Mozambique's Zambezi River. Continuación...