(Alliance News) – Glencore PLC on Monday said it has agreed to buy out its Cerrejon coal mine joint venture partners, Anglo American PLC and BHP Group PLC, for USD588 million.
For London-based Anglo American, the sale will mark the wide-ranging miner’s exit from thermal coal. Anglo will be selling its 33% stake in the Colombian mine for USD294 million.
“Today’s agreement marks the last stage of our transition from thermal coal operations,” said Anglo American Chief Executive Mark Cutifani.
Melbourne-based BHP’s 33% stake will be bought for around USD294 million as well, bringing the total price tag for Glencore to USD588 million.
“Selling BHP’s financial interest to a current Cerrejon shareholder who understands the operation represents a strong outcome for Cerrejon and the stakeholders it supports,” BHP said in a statement.