Rio Tinto has signed an agreement to sell its half share in the Clermont coal mine, north-west of Rockhampton in central Queensland’s Bowen Basin.

The mine has been sold for just over $1 billion to GS Coal, a company jointly owned by Glencore Xstrata and Sumitomo.

The sale is subject to agreement of Rio’s joint venture partners.

Rio Tinto says it remains committed to coal in central Queensland, with the recent expansion of the Kestrel mine and a study into a possible expansion at Hail Creek.

Clermont is Australia’s third largest thermal coal mine.