Glencore gets its mine stake

COMMODITIES giant Glencore has agreed to buy a 49 per cent stake in the Hunter Valley Operations coal mine, a month after missing out on the assets in a sale by Rio Tinto.

Glencore says it will pay $ US1.14 billion ($ A1.43 billion) plus a 27.9 per cent share of non- contingent royalties worth $ US240 million over five years and 49 per cent share of pricecontingent royalties that are payable by Yancoal to Rio Tinto on production from the mine.

In return, Glencore will directly acquire a 16.6 per cent stake from Yancoal Australia and a 32.4 per cent interest from Japan’s Mitsubishi Development, which is a joint venture partner in the assets.

Glencore will also subscribe to shares worth $ US300 million in Yancoal’s equity raising to fund the Coal & Allied acquisition.