Glencore Agrees to Acquire JV Partners' Stakes in Coal Mine for $588 Million

By Joe Hoppe

Glencore PLC said Monday that it has entered an agreement to acquire its joint venture partners' stakes in the Cerrejon coal mine in Colombia, for an aggregate purchase consideration of $588 million.

The mining company said it has agreed to acquire the 33.3% stakes of partners BHP Group PLC and Anglo American PLC on similar terms, with the aggregate consideration subject to purchase price adjustments calculated upon closing the deal.

Based on expected operating performance and current forward coal prices, and assuming the deal closes in the first half of 2022, Glencore expects cash generated by the operation to reduce the cash consideration to around $230 million.

The company said that it is taking stewardship of the mine after BHP and Anglo American put up sale notices, and that the alternative was one or more new partners compromising its sustainable operating environment or extending production beyond current concessions.

Glencore also said it has strengthened its emissions-reduction targets, including reducing its scope 1, 2 and 3 emissions by 50% by 2035 compared to 2019 levels, and setting a new short-term emissions reduction target of 15% by 2026 on 2019 levels.

The transactions are subject to regulatory approvals and interconditional on each other.

Write to Joe Hoppe at [e-mail]

(END) Dow Jones Newswires

June 28, 2021 02:47 ET (06:47 GMT)

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