Rio Tinto has agreed to sell its Mount Pleasant thermal coal mine site in NSW's Hunter Valley for $US224 million ($A319 million) plus royalties.
Rio will sell the undeveloped site to MACH Energy Australia, which is controlled by Indonesian conglomerate Salim Group.
The sale follows another $865 million deal struck in September when Rio offloaded its stake in the neighbouring Bengalla open cut coal mine to New Hope Corporation.
The global miner has been looking to sell its less profitable coal assets to focus on iron ore and copper amid a slump in commodities prices.
"We believe Mount Pleasant can have a very positive future under its new owners with different priorities for development and capital allocation," Rio Tinto's coal and copper chief executive Jean-Sebastien Jacques said.
The sale of the NSW mine will leave Rio with two mines in the area - Hunter Valley Operations and Mount Thorley Warkworth, which together produce around 25 million tonnes of coal per annum.
The company has now divested $US4.7 billion of assets in the past three years.
The Mount Pleasant coal mine holds total marketable reserves of 474 million tonnes, and has development approval for 10.5 million tonnes per year.
By comparison, Bengalla, the smallest of its functioning coal mines in the Hunter Valley, had approval for 12 million tonnes a year.
Under the agreement, Rio will receive royalties from the mine when coal prices exceed $US72.50 a tonne. Coal prices for spot delivery are currently around $US47/tonne.
The sale is subject to regulatory approvals and is expected to complete in the second quarter of FY16.
Rio Tinto shares were down $1.05 to $38.11 in a weak Australian market.
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