Glencore completes Umcebo stake sale

8 December 2011 (Last Updated December 8th, 2011 18:30)

Glencore International has completed the acquisition of a 43.66% equity interest in South Africa-based coal mining business Umcebo Mining.

Glencore International has completed the acquisition of a 43.66% equity interest in South Africa-based coal mining business Umcebo Mining.

The company acquired Umcebo's stake for R900m ($111m) in July last year.

Glencore secured the approval of the regulatory authorities in South Africa and consent from certain third parties for the transaction.

The deal will give Glencore access to a coal field in Mpumalanga and an eventual 1.5Mt of export allocation for the fifth phase of the Richards Bay Coal Terminal.

Umcebo currently has three thermal coal mines in operation and a standalone wash plant, with an annual production capacity of 7.2Mt.

Umcebo's development pipeline has attributable resources of at least 860Mt.