29 Aug Glencore starts sales process for Australian coal mine
Glencore (LSE:GLEN) has made a move to divest a second Australian coal mine, along with its Japanese joint venture partners Itochu Corp and Sumitomo Corp.
The forthcoming sale of its Rolleston mine is part of the multi-focused commodity giant’s reconsideration of how it deploys capital as it continues to supress company debt.
“This decision is part of Glencore’s ongoing programme to optimise its portfolio and redeploy capital into other opportunities,” said the company in a statement.
The Rolleston mine, of which Glencore holds a 75% stake in, is located in the Bowen Basin in Queensland, roughly 1,500km from other Glencore mines in neighbouring New South Wales.
Therefore, the isolated nature of the facility makes the blending of Rolleston coal with supply from other mines an uneconomic process.
Glencore also placed its wholly-owned Tahmoor coking coal mine on the block in May, citing a desire to concentrate on mining thermal coal in Australia.
Other mining giants have also looked to part company with their Australian coal mines in recent months including Rio Tinto and Wesfarmers Ltd, which have attracted the interest of several potential buyers.