Published: January 13, 2022 |

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Diversified natural resource company Glencore has completed the acquisition of 66.6 percent interest from joint venture partners Anglo American and BHP in Cerrejón coal mine in Colombia.

Anglo American and BHP each held a 33.3 percent stake in the thermal coal project.

In June last year, Glencore agreed to purchase stakes from both companies in a deal valued at up to $588 million.

Based on an economic effective date of December 31, 2020, the purchase price consideration was agreed.

“After taking into account the dividends generated by robust 2021 operating cashflows, together with certain other adjustments, the cash payment to be made by Glencore on completion is $101 million,” Glencore said in a statement.

Situated in the La Guajira province of Colombia, Cerrejón is said to be one of the world’s largest open-cut export energy coal mines. It has an integrated extraction, rail transport, and export operation from Puerto Bolívar.

Cerrejón is expected to hold the potential to produce around 25 million tonnes of coal per annum. Its gross assets are $2.96 billion, and the loss attributable to Cerrejón in the year ended December 31, 2020 was $226 million.

Glencore also stated that the acquisition of Cerrejón is in line with the company’s climate change strategy and has been included in its stated emission reduction targets.

The company aims to minimize total emissions footprint by 15 percent by 2026 and 50 percent by 2035. It also intends to achieve a net zero total emissions business by 2050.

In October last year, Glencore secured approval from the Australian Environment Minister Sussan Ley for its Mangoola coal mine extension project in New South Wales (NSW).

Source: NS Energy

About Glencore
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly sourced commodities that advance everyday life. The Group’s operations comprise around 150 mining and metallurgical sites and oil production assets.

With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore’s industrial activities are supported by a global network of more than 30 marketing offices. Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing, and oil sectors. They also provide financing, logistics, and other services to producers and consumers of commodities. Glencore’s companies employ around 135,000 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. They are an active participant in the Extractive Industries Transparency Initiative. Glencore’s ambition is to be a net zero total emissions company by 2050.

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