Clermont Coal sold to Glencore Xstrata
GLENCORE Xstrata and Sumitomo Corporation have signed a binding agreement to acquire Rio Tinto's 50.1% interest in Clermont Coal.
Glencore's head of coal assets Peter Freyberg said he was "pleased" to be acquiring the mine, which is Australia's third largest thermal coal mine.
"We are pleased to be jointly acquiring a controlling interest in this mine with Sumitomo," Mr Freyberg said.
"Clermont is a large scale, low cost, producing mine offering an attractive financial return."
Upon completion of the deal, Glencore will assume Rio Tinto's role in relation to operational management and marketing for the Clermont joint venture, and will receive customary management fees.
Rio Tinto chief financial officer Chris Lynch said the company remains committed to a long-term future in central Queensland.
"The sale of Clermont Mine will allow us to realise value for our shareholders as we continue optimising our portfolio. It also demonstrates our focus on strengthening our balance sheet and taking a disciplined approach to allocating capital across the Group," Mr Lynch said.
The purchase comes just two weeks after Linc Energy purchased Blair Athol mine from Rio Tinto.