Rio Tinto has agreed to sell its majority stake in a New South Wales copper and gold mine to a Chinese firm.
The mining giant will sell its 80 per cent stake in Northparkes mine, in central NSW, to China Molybdenum for $US820 million ($A892.37 million).
Rio is in the process of divesting itself of non-core asset to rein in costs.
"Northparkes is a successful business but is not of sufficient size to be a good fit with our strategy," Rio chief financial officer Chris Lynch said in a statement on Monday.
"We believe it will have a strong future under its new ownership."
The sale is subject to Rio's joint venture partners, Japanese company Sumitomo, waiving or failing to exercise its rights to match China Molybdenum's bid.
It is also conditional upon customary regulatory approvals, and the approval of China Molybdenum shareholders.
