Glencore PLC (LON:GLEN) has sold its Tahmoor coal mine in Australia to British industrialist Sanjeev Gupta’s GFG Alliance for an undisclosed sum.
Tahmoor was put up for sale along with the Rolleston mine in Australia last year as Glencore looks to consolidate its coal activities around the Hunter Valley.
Glencore and GFG Alliance did not disclose the sale price for Tahmoor but sources told Reuters the mine was likely to have received about A$100mln.
Gupta has been buying unwanted industrial assets in Britain, Australia and the US over the past few years. Last year, it purchased the financially troubled Whyalla steel works in southern Australia as part of its plans to build an integrated steel business.
GFG executive chairman Gupta said Tahmoor produces about 2mln tonnes of coal a year, mostly high-quality coking coal used for steel making globally and in Australia, including at the Whyalla facility.
“The acquisition of the Tahmoor mine is an exciting step forward in our stated strategy to create fully-integrated, end-to-end businesses in Australia, from raw materials and energy right through to high-value finished products ready for market,” he said.
The deal is expected to be completed in the first quarter of 2018, subject to foreign investment approval in Australia.
Gupta runs metals group, Liberty House, and energy and commodities group SIMEC.