Sept 1 (Reuters) - Rio Tinto (LON:RIO) Ltd RIO.AX
* Rio Tinto completes divestment of Coal & Allied
* Yancoal takes over management of Rio Tinto's thermal coal business in Hunter valley region of New South Wales.
* Will receive total consideration of $2.69 billion for sale
* Group's guidance for thermal coal production in 2017 has been revised to 13-14 million tonnes, from 17-18 million tonnes previously
* Rio Tinto will use consideration received for general corporate purposes and group's capital allocation framework will be applied
* Under terms of sale, Rio Tinto may also receive an additional royalty linked to coal price capped at $410 million
* "Taxable gain on disposal of these assets is expected to be largely offset by carried forward capital losses in Australia"
* Cash tax payable is expected to be relatively low compared to quantum of taxable gain
* Says a further $90 million in royalty is expected before end of 2018