AusBN - Glencore (ASX:GLEN) will sell its Tahmoor coal mine, located in New South Wales, to British industrialist Sanjeev Gupta’s GFG Alliance after an undisclosed sum was agreed between the two parties.
Tahmoor is one of two Australian coal mines which were put up for sale by the Swiss-based commodities giant last year, who will receive around AUS$127 million for the mine, according to sources close to the sale.
Gupta’s latest acquisition follows his purchase of the troubled Whyalla Steelworks in South Australia last year, which formed part of a plan to build an integrated steel business by taking on unwanted assets from other companies.
“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,” said GFG’s executive chairman Gupta.
Tahmoor produces about 2Mt of coal per annum, most of which is high-quality coking coal used for steel making internationally and in Australia including at the Whyalla facility, he added.
The transaction will likely be completed by the first quarter of 2018, pending foreign investment approval in Australia.