Glencore has reached an agreement to purchase BHP’s 33.3% interest in Cerrejón, a non-operated energy coal joint venture in Colombia, for US$294 million.
Glencore, which currently holds a 33.3% stake in the operation, has also reached an agreement to acquire the remaining 33.3% interest in the project from the third JV partner, Anglo American.
Cerrejón is one of the largest surface mining operations in the world and mines high quality thermal coal for the export market.
It moves 550 million tons of material a year and employs more than 12,000 employees and contractors.
Ivan Glasenberg, CEO of Glencore, said the Board was convinced that acquiring full ownership of Cerrejón ‘is the right decision’ for the company.
“Glencore has been involved with Cerrejón for more than 20 years. We know the asset well and believe that we are the most responsible steward for Cerrejón at this stage of its lifecycle,” Mr Glasenberg said.
“Disposing of fossil fuel assets and making them someone else’s issue is not the solution and it won’t reduce absolute emissions.
“We are confident we can manage the decline of our fossil fuel portfolio in a responsible manner that is also consistent with meeting the goals of the Paris Agreement, as demonstrated by our strengthened total emission reduction targets.”