The move comes after the receipt of required regulatory approvals.
The acquisition includes the Benga coal mine and other coal projects in the Tete province.
Rio Tinto said: "Rio Tinto’s other assets in the country remain unaffected by the transaction."
Rio Tinto acquired the assets in 2011 as part of its purchase of Riversdale Mining for $4bn; however, the company wrote down the assets value by $3bn in 2013.
ICVL announced plans in August to boost coal production at the Benga mine with an investment of $300m, reported The Times of India.
ICVL is a consortium comprising Steel Authority of India, Rashtriya Ispat Nigam, NMDC, Coal India and NTPC, and was established to acquire coking coal mines overseas.
Image: Rio Tinto Coal Mozambique operations include the Benga coal mine and Tete coal projects. Photo: © 2014 Rio Tinto.
