Miner looks for buyer
Business as usual as mine added to the list of mines for sale in Bowen Basin.
Wednesday 30 August 2017
Glencore and its partners Itochu and Sumitomo have started an official sale process for the Rolleston coal mine this week.
Last year the mine produced a little over 13 million tonnes of thermal coal, and according to Glencore is a profitable operation.
In a statement, the company said they were a willing but not desperate seller.
"It will be business as usual at the mine as we work through the sale process,” Glencore said.
"The Rolleston mine is a high-quality asset that offers potential buyers the opportunity to gain a strong foothold, or significantly increase their current position, in the Australian and Queensland coal industry.
"This decision is part of Glencore's ongoing program to optimise its portfolio and redeploy capital into other opportunities."
However, the move to sell the Rolleston mine does not in anyway represent a move away from thermal coal mining generally for Glencore.
After losing a bidding war with Chinese government backed Yancoal to buy Rio Tinto’s NSW based Coal and Allied thermal coal business earlier in the year, Glencore struck a deal that will give it a 49% stake in the business, if and when the deal finalises.
They also received mining leases covering the proposed Wandoan Mega mine in the Surat Basin earlier this month.
Glencore is currently the world’s largest miner of seaborne thermal coal, and the Rolleston coal mine has government approvals to extend the mines by more than 20 years.