Glencore has completed the acquisition of the 66.6% stake in the Cerrejon coal mine in Colombia from joint venture (JV) partners BHP and Anglo American.
BHP and Anglo American each held a stake of 33.3% in the open-cut mine, which is located in the La Guajira province.
Originally, Glencore agreed to acquire their respective stakes in June 2021 for a total consideration of $588m.
The completion provides Glencore with 100% ownership and operating control of Cerrejón.
In a press statement, Glencore said: “After taking into account the dividends generated by robust 2021 operating cash flows, together with certain other adjustments, the cash payment to be made by Glencore on completion is $101m.”
The sale marks Anglo American’s exit from the thermal coal market.
While the Cerrejon mine’s existing concessions are due to expire in 2034, production volumes are expected to ‘decline materially’ from 2030 onwards.
The acquisition of the Cerrejón mine complies with Glencore’s climate change strategy.
The company has pledged to reduce its total emissions footprint by 15% by 2026, 50% by 2035 and reach net-zero total emissions operations by 2050.
In a separate announcement, BHP has approved the transition of the $3.6bn South Flank iron ore mine in Western Australia to autonomous haulage.
Starting in June 2022, the autonomous haulage would be launched in phases across five Autonomous Operation Zones (AOZs).
As part of the plan, BHP will convert the entire fleet of 41 Komatsu 930e haul trucks at the South Flank mine for autonomous operation by September 2023.
Commissioned in May 2021, the South Flank project includes an 80Mtpa crushing and screening plant, an overland conveyor system, and stockyard and train loading facilities.