Glencore has finalised a deal to acquire Rio Tinto’s 50.1% stake in the Clermont coal mine in Queensland.
Under the agreement Glencore has taken over GS Coal, a company jointly owned by Glencore and Sumitomo for $US1.015 billion ($AU1.091 billion) and will manage the thermal coal mine in central Queensland.
Rio said offloading the asset is good for the company’s shareholders.
“It demonstrates the Group’s focus on strengthening its balance sheet and taking a disciplined approach to allocating capital,” Rio said.
Glencore first agreed to take over the mine in October last year, pending regulatory approvals, seeing Clermont as an asset which complements its existing operations and marketing capabilities.
“It is a producer of high energy thermal coal, with minimal future capital requirements,” a Glencore spokesperson said.
Glencore said it will be reviewing the operations and identifying any crossovers or synergies production or marketing activities at Clermont may have with its other Queensland operations.