08 May 2018
Anglo-Swiss multinational Glencore said Friday that it completed the acquisition of 49% interest in Yancoal's Hunter Valley Operations thermal coal mine in New South Wales, Australia.
China's Yancoal holds a 51% stake in the joint venture.
"We look forward to a successful partnership with Yancoal at the HVO JV and expect it will bring significant benefits for both companies and their shareholders," Glencore's Australian coal business COO Ian Cribb said.
To establish the joint venture, Glencore -- following Yancoal's acquisition of Coal & Allied from Rio Tinto -- acquired a 16.6% interest in the HVO from Yancoal for approximately $429 million and a 32.4% interest directly from Mitsubishi Development.
Yancoal's chairman Xiyong Li said the move "signals a new future of co-operation and success for two of Australia's largest coal producers."
The venture will be jointly controlled by Yancoal and Glencore, and managed by an independent management team appointed through a committee.
"The combined experience and efficiencies of both companies will enable Yancoal and our shareholders to benefit from operational synergies and continued production performance," Yancoal CEO Reinhold Schmidt said.
In the January-March quarter, the Hunter Valley Operations mine produced a total of 2.89 million mt, according to Yancoal's quarterly report. In 2015, the mine produced more than 13 million mt of thermal coal and semi-soft coking coal. The coal is transported to the Port Waratah Coal Terminal at the Port of Newcastle, from where it is shipped to international customers.