Glencore acquires troubled Australian miner Atlas Iron
Glencore has acquired an 8.47% interest in troubled Australian iron ore miner Atlas Iron in a $15.8m deal.
According to a regulatory filing, Glencore subsidiary Maru Sky now owns 8.5% interest in Atlas, which has been under pressure to stay operating due to weak global iron ore prices.
The acquisition will give Glencore direct access to production of iron ore.
Glencore acquired some of Atlas Iron's debt in 2015 and converted a portion of it to shares under a restructuring programme.
Reuters reported Glencore as saying that the company did not produce any iron ore on its own, but holds marketing rights for a portion of Atlas production under a supply deal.
In 2015, Atlas Iron suspended mining operations at its Pilbara sites due to a fall in iron ore prices.
Furthermore, the company said that it will stop exports following suspension of operations at all its mines.
The suspension was imposed because the cost of extracting iron ore was believed to be greater than the market price it was sold for.
Atlas Iron was worth nearly $3bn in 2011.