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Glencore acquires a coal mine in Colombia


Glencore announced Monday that it had acquired its partners’ interests in a coal mine in Colombia. The deal should allow the company to achieve its climate goals.

In northeastern Colombia, Glencore will purchase the respective 33.3% shares held by BHP and Anglo American for a total of 588 million dollars.

Glencore will acquire the respective 33.3% stakes held by its Australian and British counterparts in the Cerrejon mine in northeast Colombia for $588 million, according to a statement. Thus, the group becomes the sole owner of the mine.

The transaction is retroactive to the end of last year. Considering the future operational performance of the mine, coal prices, and the completion of the buyout in 2022, the cash generated by the mine is expected to reduce acquisition costs by $230 million. The return on investment should be within two years.

Cerrejon is one of the world’s largest thermal coal strip mines.

Glencore believed that buying out its counterparts to take control of the mine was the best way to meet its climate commitments, including phasing out coal. The concession is due to expire in 2034 and production volumes will decline from 2030.

Glencore CEO Ivan Glasenberg says selling fossil fuel assets and passing responsibility on to someone else is not the solution and will not reduce greenhouse gas emissions.

As a consequence of taking over 100% control of the Cerrejon mine, the company revised its climate targets. Management has increased its medium-term emissions reduction targets from 40% to 50% by 2035. Glencore plans to reduce its emissions by 15% in five years, compared to 2019.

In addition, the company has reaffirmed its commitment to the Paris Agreement on limiting global warming.

For MetaNews.


Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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