TORONTO (miningweekly.com) – Diversified miner Rio Tinto will receive proceeds of at least $741-million from transactions related to the initial public offering (IPO) of its Cloud Peak Energy unit, which started trading on the New York Stock Exchange on Friday, the group said.

Rio sold 30,6-million shares in Cloud Peak this week, at $15 each, and expects to realise $434-million from the sale. The company had reportedly initially wanted between $16 and $18 a share.

It is also expecting a cash distribution of $307-million from the proceeds of Cloud Peak's $600-million offering of senior notes, also priced this week.

Both transactions are expected to close on November 25.

Cloud Peak's stock was trading at $14,45 a share by 11:29 on Friday, its first day of trading.

Rio said it will retain an interest of up to 48% in the coal miner, which has operations in Wyoming and Montana.

The US coal business was one of the units identified for sale as part of Rio Tinto's plans to sell assets to reduce its debt after buying aluminium giant Alcan.

“The successful pricing of Cloud Peak Energy Inc’s debt offering and its fully subscribed IPO has proved that the IPO route was the best option for divesting these assets,” Rio Tinto CFO Guy Elliott said in a statement.

“Including the sale of Jacobs Ranch, we will realise proceeds of at least $1,5-billion before tax for assets that were previously part of Rio Tinto Energy America, while retaining a substantial interest in Cloud Peak Energy Resources."

Since February 2008, Rio Tinto has announced asset sales of $8,3-billion, including the sale of its ownership interest in Cloud Peak.

The group has also received a binding offer from Amcor of $2,03-billion for Alcan Packaging's global pharmaceuticals, global tobacco, food Europe and food Asia divisions.