AUSTRALIA > Switzerland based Glencore is set to acquire Hail Creek Coal Mine and Valeria coal resource in Queensland, Australia for $1.7 billion  

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Swiss Glencore is set acquire Rio Tinto’s 82% interest in the Hail Creek coal mine and 71.2% interest in the Valeria coal resource in Central Queensland for a total cash consideration of $1.7 billion.

Nippon Steel Australia Pty Ltd (8%), Marubeni Coal Pty Ltd (6.67%) and Sumisho Coal Development Pty Ltd (3.33%) own the remaining 18% of the Hail Creek coal mine. Each Joint Venture partner of Hail Creek has a “tag-along” right in this transaction which could lead to additional investment of $340 million from Glencore.

Hail Creek produced about 9.4 million tons of coal for export from the Dalrymple Bay Coal Terminal in 2017 and is located 120 kms southwest of Mackay.

Hail Creek had JORC resources of 794 million tons with proven and probable reserves of 142 million tons as of 31 December 2017 and is a large scale and low cost mine that produces two- thirds premium quality hard coking coal and one- third thermal coal for export.

Whereas, Valeria thermal coal has JORC resources of 762 million tons and is 265 kms west of Rockhampton and 67 kms southeast of Cermont, where the company manages another coal operation.

Subject to regulatory approvals , the acquisition is expected to be completed in 2018.

Glencore employs more than 7300 people across mining and mineral processing operations in coal, copper and zinc in Queensland and it contributed Australian $4.2($3.3 billion) billion to the state economy in wages, goods and services, taxes and royalties, continued investment and community partnerships .

About Glencore

Founded in 1974, Glencore is engaged in the production, refinement, processing, storage, transport and marketing of metals and minerals, energy products, and agricultural products worldwide. It operates in three segments: Metals and Minerals, Energy Products, and Agricultural Products. Employing around 145977 employees worldwide, Glencore’s Metals and Minerals segment is involved in smelting, refining, mining, processing, and storing zinc, copper, lead, alumina, aluminum, ferroalloys, nickel, cobalt, and iron ore.