Mitsubishi Corporation is selling its interest in two Australian thermal coal mines for A$750 million ($539 million) to its joint venture partners Glencore and Sumitomo Corp., in a move that marks the end of its involvement in upstream fossil fuels.
The company, which is Japan’s biggest trading house, will sell its 31.4% stake in the Clermont coal mine to GS Coal, the 50-50 joint venture between Glencore and Sumitomo, and its 10% stake in the Ulan coal mine to Glencore.
The Swiss miner and commodities trader said the deal value was $530 million. Glencore noted it would only spend $130 million, mainly on the Ulan asset, while GS Coal will use its own funds for the Clermont stake. Continue Reading →