Rio Tinto Considering IPO For US Coal Assets

　　LONDON -(Dow Jones)- Diversified global miner Rio Tinto PLC (RTP) Friday said it was considering an initial public offering for its U.S. coal business instead of an outright sale to another company. 　　Rio Tinto has targeted the sale of $10 billion in assets this year and has said it will sell at least $15 billion in total as it defends itself against a hostile bid from BHP Billiton Ltd. (BHP). 　　Rio Tinto subsidiary Cloud Peak Energy Inc., based in Gillette, Wyo., Friday filed an IPO prospectus with U.S. Securities and Exchange Commission. 　　The filing lists a maximum offering price of $1 billion, though a company spokesman noted that figure is used to determine a filing fee and doesn't indicate the ultimate proceeds. 　　A price range would be established before the actual sale, the spokesman added. 　　Last year ABN Amro estimated the sale value of Rio Tinto's U.S. coal assets at $4.1 billion, though prices for the commodity have since more than doubled year- on-year. 　　Cloud Peak produced 132.3 million tons of coal in 2007, making it the second- largest producer in the U.S. by volume. 　　Rio Tinto Chief Financial Officer Guy Elliott said Rio Tinto continues to explore the possible sale of some or all of its U.S. coal assets as part of the group-wide divestment program, as well as the IPO option. 　　"Both options are being explored in the interests of maximizing shareholder value," he said in a statement. 　　Rio Tinto in July said it sold its Kintyre uranium project in Western Australia for $495 million, taking total asset sales so far to $2.94 billion. 　　Rio Tinto has said proceeds will help pay down the $40 billion in debt it took on to fund its $38.1 billion takeover of aluminum producer Alcan. 　　Rio Tinto has rejected BHP Billiton's $147 billion, all-equity proposed bid. 　　At 1216 GMT, Rio Tinto shares traded down 2.7%, or 131 pence lower at 4,680 pence in a lower overall U.K. mining market.