Glencore Buys Rio Tinto Interest in Hail Creek, Valeria Resource, for $1.7 Billion
March 20 2018 - 4:48AM
Dow Jones News
By Oliver Griffin
Glencore PLC (GLEN.LN) said Tuesday that it has acquired Rio
Tinto PLC's (RIO.LN) 82% interest in the Hail Creek coal mine and
adjacent coal resources, as well as its 71.2% interest in the
Valeria coal resource, for $1.7 billion.
The mining company said the remaining 18% of Hail Creek is
currently owned by Nippon Steel Australia Pty Ltd, Marubeni Coal
Pty Ltd., and Sumisho Coal Development Pty Ltd. Each of these
partners has the right to sell its share to Glencore, which could
result in an additional consideration of $340 million.
Both of the mines are in Queensland, Australia, Glencore
said.
During the 2017 financial year, Rio Tinto's attributable pretax
profit from Hail Creek was $357 million, Glencore said.
Rio Tinto said it expects the deal to be completed in the second
half of 2018, adding that the proceeds will be used for general
corporate purchases.
Write to Oliver Griffin at oliver.griffin@dowjones.com
(END) Dow Jones Newswires
March 20, 2018 04:33 ET (08:33 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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