21 Oct Glencore sells Australian coal rail business to US firm
Glencore (LSE:GLEN) is selling its rail branch in Australia’s Hunter Valley for AUS$1.14 billion to American firm Genesee & Wyoming as it continues to reduce its debt load.
The sale of the coal haulage business, Glencore Rail (GRail), represents a significant step in meeting CEO Ivan Glasenberg’s target of US$5 billion in asset sales in 2016.
The price is an increased on the Swiss company’s earlier target of AUS$1 billion and takes this year’s asset sales to US$4.7 billion.
“We established GRail in 2010 and have steadily grown it to become the third largest coal haulage business in the country. It has played a very important role in reducing costs and improving the overall efficiency of Australia’s largest coal chain in the Hunter Valley,” said Peter Freyberg, head of Glencore’s global coal assets.
“We are very pleased with the outcome of the sale process and look forward to continuing our constructive working relationship with Genesee & Wyoming in the years ahead.”