Glen­core con­sid­ers buy­ing An­glo stake in Colom­bia coal mine

The Pak Banker - - COMPANIES/BOSS -

Glen­core Plc may in­crease its stake in Colom­bia's largest coal mine, Cer­re­jon, if An­glo Amer­i­can Plc car­ries out re­cently an­nounced plans to sell its one-third in­ter­est.

Both Glen­core and joint-owner BHP Bil­li­ton Ltd are en­ti­tled to buy An­glo's stake un­der ex­ist­ing agree­ments, Glen­core Chief Ex­ec­u­tive Of­fi­cer Ivan Glasen­berg said in a con­fer­ence call Tues­day. Glen­core's pref­er­ence would be to share An­glo's stake with BHP, rather than buy it all, he said. "Cer­re­jon is an op­por­tu­nity," Glasen­berg said. "If we can get it at the right price. It's some­thing we wouldn't want to walk away from."

There are merger and ac­qui­si­tions op­por­tu­ni­ties in the mar­ket at the mo­ment and Glen­core is "look­ing at ev­ery­thing," as long as the as­set pur­chases won't un­der­mine the com­pany's bal­ance sheet, he said.

Coal is Colom­bia's main ex­port, af­ter oil, and is pre­dom­i­nantly sold to Euro­pean power pro­duc­ers. The An­dean na­tion pro­duced 85.5 mil­lion met­ric tons in 2015.

The sale and de­liv­ery of coal from Cer­re­jon in north­ern Colom­bia is cur­rently car­ried out by Coal Mar­ket­ing Com­pany Ltd., or CMC, based in Dublin. Glen­core and BHP "would have to look" at the in­de­pen­dent unit if both com­pa­nies in­creased their stake in Cer­re­jon, Glasen­berg said.

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