Glen­core gets its mine stake

Townsville Bulletin - - NEWS -

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.

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