After the joint ventures BHP and Anglo American will announce who offered to sell all their shares in the mine Cerrejón, In colombia, Glencore reached an agreement with each of them, on substantially the same terms, to acquire their respective 33.3% stakes.
The transaction has an economic effective date of December 31, 2020, with an aggregate purchase consideration of $ 588 million, with purchase price adjustments calculated at closing.
“Based on expected operating performance and current future coal prices, assuming a close during the first half of 2022, we anticipate that the cash generated by the operation will reduce the cash consideration to approximately $ 230 million, making the investment recovery period estimated to be less than 2 years from closureGlencore explained.
The transactions are subject to various regulatory approvals and are conditional on each other.
Glencore also reported that it carefully considered “how best to respond to the sale notices in a manner that reflects our commitment to achieving the objectives of the Paris Agreement and recognizing our obligation to act as a responsible asset manager.”