Glencore has reached agreement with Genesee & Wyoming Australia (GWA) to sell its Glencore Rail (GRail) coal haulage business in the Hunter Valley for A$1.14 billion.
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Finalisation of the transaction is subject to Foreign Investment Review Board approval.
The coal haulage business was placed on market in March this year and its sale is good news for the mining giant as it will help to pay down part of the company’s existing debts.
Glencore’s , Head of Global Coal Assets, Peter Freyberg said: “We established GRail in 2010 and have steadily grown it to become the third largest coal haulage business in the country.
“It has played a very important role in reducing costs and improving the overall efficiency of Australia’s largest coal chain in the Hunter Valley. We are very pleased with the outcome of the sale process and look forward to continuing our constructive working relationship with Genesee & Wyoming in the years ahead.”
Upon completion, GWA will service the majority of Glencore’s coal haulage requirements in the Hunter Valley via a 20 year contract for the haulage of our export coal to the Port of Newcastle.
GRail currently hauls approximately 40 million tonnes per year of Glencore’s Hunter Valley coal production to the Port of Newcastle.
Louise Nichols
From cattle to coal. Once a specialist agriculture writer today its about community, in particular, the Upper Hunter. I have lived and worked in the region for more than 30 years. Land use issues and the future direction of our region. But you cannot take ag out of the picture - our food and how we grow it is the basis of all life. Covering the Hunter and Mid North Coast rural issues is now part of my role with ACM.
From cattle to coal. Once a specialist agriculture writer today its about community, in particular, the Upper Hunter. I have lived and worked in the region for more than 30 years. Land use issues and the future direction of our region. But you cannot take ag out of the picture - our food and how we grow it is the basis of all life. Covering the Hunter and Mid North Coast rural issues is now part of my role with ACM.
