Brazil-based mining company Vale has announced agreement to sell its Integra coal mine in Australia to Glencore and Bloomfield Group jointly.
The mine, which was put under care and maintenance since July 2014, is the second mine sold by the company in August.
Vale’s latest move comes as part of its strategy to divest non-core assets.
The latest sale will see Glencore acquiring the underground operations of Integra, while Bloomfield will buy the open cut mine, the wash plant and rail loop facilities.
In July, the company divested another coal mine in Australia to a local operator for A$1 due to sector downturn.
Prior to its closure, the Integra colliery produced about 4.5 million tonnes of coal a year from its underground, as well as open cut mine.
Vale had been planning to sell Integra since 2012. Located 10km from the township of Singleton in New South Wales’ Hunter Valley, Integra mine complex is 61.2% owned by Vale as operator. The coal mine produces premium semi-hard, semi-soft metallurgical coals used in the steel-making industry across the globe.
Bloomfield Group managing director John Richards told media sources: "This is a logical and unique opportunity that would strengthen our ability to operate over the long-term."
The companies have not disclosed the transaction value.
During the past two years, Australia witnessed a loss of more than 4,000 jobs at its coal mines alone.