Glencore has reached agreement with Genesee & Wyoming Australia (GWA) to sell its Glencore Rail (GRail) coal haulage business in the New South Wales Hunter Valley for A$1.14 billion. The closure of the transaction is subject to FIRB approval.
Peter Freyberg, Head of Glencore's Global Coal Assets, said: "We established GRail in 2010 and have steadily grown it to become the third largest coal haulage business in the country. It has played a very important role in reducing costs and improving the overall efficiency of Australia's largest coal chain in the Hunter Valley. We are very pleased with the outcome of the sale process and look forward to continuing our constructive working relationship with Genesee & Wyoming in the years ahead."
Upon completion, GWA will service the majority of Glencore's coal haulage requirements in the Hunter Valley via a 20 year contract for the haulage of our export coal to the Port of Newcastle.
GRail currently hauls approximately 40 million tonnes per year of Glencore's Hunter Valley coal production to the Port of Newcastle.
The sale of the GRail business forms another significant part of Glencore's debt reduction program.
Source: Glencore International AG