Glencore Buys Rio Tinto Interest in Hail Creek, Valeria Resource, for $1.7 Bi..

By Oliver Griffin

Glencore PLC said Tuesday that it has acquired Rio Tinto PLC 82% interest in the Hail Creek coal mine and adjacent coal resources, as well as its 71.2% interest in the Valeria coal resource, for $1.7 billion.

The mining company said the remaining 18% of Hail Creek is currently owned by Nippon Steel Australia Pty Ltd, Marubeni Coal Pty Ltd., and Sumisho Coal Development Pty Ltd. Each of these partners has the right to sell its share to Glencore, which could result in an additional consideration of $340 million.

Both of the mines are in Queensland, Australia, Glencore said.

During the 2017 financial year, Rio Tinto's attributable pretax profit from Hail Creek was $357 million, Glencore said.

Rio Tinto said it expects the deal to be completed in the second half of 2018, adding that the proceeds will be used for general corporate purchases.

Write to Oliver Griffin at [email protected]