Wrap Text
GLN - Glencore to acquire Hail Creek Coal Mine in Queensland
Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64
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
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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.
Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank Division)
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