Anglo-Australian multinational mining group Rio Tinto on Thursday unveiled how it intends to return the proceeds of its recent Australian coal disposals to its shareholders.

The company will launch a $3.2-billion share buyback programme, combining an off-market buyback tender targeting up to 41.2-million Rio Tinto shares (worth about A$2.7-billion, or $1.9-billion) and further on-market purchases of Rio Tinto shares.

Rio Tinto CE Jean-Sébastien Jacques said returning the coal disposal proceeds demonstrated the company’s commitment to capital discipline and providing sector-leading shareholder returns.

“We will continue to focus our portfolio on those assets which provide the highest returns and growth, which will ensure that we continue to deliver superior value to our shareholders in the short, medium and long term.”

Rio Tinto will target the completion of the off-market purchase of shares before the end of the year. The aggregate maximum consideration and timing of the new on-market purchases by Rio Tinto under the programme will be announced on November 12 – this is in addition to the existing Rio Tinto buyback programmes, of which $1.7-billion in shares remain to be purchased and which will be completed no later than February 27, 2019.

The $3.2-billion of net disposal proceeds was derived from the completed sales of Hail Creek, Valeria, Winchester South and Kestrel projects in Australia.

The company on August 1 announced the completion of the sale of its interest in the Hail Creek coal mine, and the Valeria coal development, to fellow major Glencore, for $1.7-billion. Rio’s interest in the Kestrel underground mine was sold to a consortium comprising private equity manager EMR Capital and PT Adora Energy for $2.25-billion.

Rio earlier this year struck a deal with Australian coal miner Whitehaven Coal to divest of its 75% interest in the Winchester South coal project, in Queensland, for A$200-million, after selling its Coal & Allied subsidiary to ASX-listed Yancoal Australia, for $2.69-billion.

Rio Tinto is yet to complete the sale of the Aluminium Dunkerque smelter in France for $500-million.