TIDMGLEN
RNS Number : 2575I
Glencore PLC
20 March 2018
Glencore plc
Baar, Switzerland
20 March 2018
GLENCORE TO ACQUIRE
HAIL CREEK COAL MINE IN QUEENSLAND
Glencore has reached agreement to acquire Rio Tinto's 82%
interest in the Hail Creek coal mine and adjacent coal resources,
as well as its 71.2% interest in the Valeria coal resource in
central Queensland for a total cash consideration of US$1.7
billion.
The remaining 18% of Hail Creek is currently owned by Nippon
Steel Australia Pty Ltd (8%), Marubeni Coal Pty Ltd (6.67%) and
Sumisho Coal Development Pty Ltd (3.33%). Each Joint Venture
partner has the right to sell its share to Glencore through a
"tag-along" right with respect to this transaction, which could
result in additional consideration of up to US$340 million.
The Hail Creek mine is located 120 kilometres south-west of
Mackay and in 2017 produced about 9.4 million tonnes of coal for
export from the Dalrymple Bay Coal Terminal.
In the 2017 financial year Rio Tinto's attributable share of
Hail Creek was EBITDA of US$408 million (US497 million, on a 100%
basis) with a pre-tax profit of US$357 million (US$435 million, on
a 100% basis) and, including the Valeria resource, gross assets of
US$859 million (US$1,013 million, on a 100% basis) at 31 December
2017.
Hail Creek is a large-scale, long-life and low-cost mine
producing two-thirds premium quality hard coking coal and one-third
thermal coal for export.
As at 31 December 2017, Hail Creek had JORC resources of 794
million tonnes with proven and probable reserves of 142 million
tonnes.
The Valeria thermal coal deposit is located 265 kilometres west
of Rockhampton and 67 kilometres south-east of our Clermont managed
coal operation. It has JORC resources of 762 million tonnes.
The acquisition is subject to regulatory approvals and is
expected to complete in H2 2018.
Glencore is already a significant contributor to the Queensland
economy, employing more than 7,300 people across mining and
minerals processing operations in coal, copper and zinc.
In 2017 Glencore operations contributed over A$4.2 billion to
the State economy in wages, goods and services, taxes and
royalties, continued investment and community partnerships.
Our Australian coal business managed the production of more than
87 million tonnes of saleable coal last year from our 17
operational mines in Queensland and New South Wales.
For further information please contact:
Investors
Martin Fewings t: +41 41 709 2880 m: +41 79 737 5642 martin.fewings@glencore.com
Ash Lazenby t: +41 41 709 2714 m: +41 79 543 3804 ash.lazenby@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
Francis De Rosa t: +61 2 8247 6352 m: +61 417 074 751 francis.de.rosa@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 90 commodities. The Group's operations comprise around
150 mining and metallurgical sites, oil production assets and
agricultural facilities.
With a strong footprint in both established and emerging regions
for natural resources, Glencore's industrial and marketing
activities are supported by a global network of more than 90
offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, oil and food processing
sectors. We also provide financing, logistics and other services to
producers and consumers of commodities. Glencore's companies employ
around 146,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative.
About Glencore's coal business in Australia
Glencore is one of Australia's largest coal producers with 13
mining complexes - including 17 operational mines - across New
South Wales and Queensland.
We employ over 7,600 Australians and in 2017 managed the
production of more than 87 million tonnes of thermal and coking
coal, predominantly for export.
We have a strong safety and environmental performance and play
an active role in the development of low emission coal
technology.
For more information, please visit www.glencore.com.au
www.facebook.com/Glencore
www.flickr.com/photos/glencore
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www.linkedin.com/company/8518
www.slideshare.net/glencore
www.twitter.com/glencore
www.youtube.com/glencorevideos
Disclaimer
The companies in which Glencore plc directly and indirectly has
an interest are separate and distinct legal entities. In this
document, "Glencore", "Glencore group" and "Group" are used for
convenience only where references are made to Glencore plc and its
subsidiaries in general. These collective expressions are used for
ease of reference only and do not imply any other relationship
between the companies. Likewise, the words "we", "us" and "our" are
also used to refer collectively to members of the Group or to those
who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or
companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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