Global mining and metallurgical producer Glencore is acquiring its joint venture partners, Anglo American and BHP’s, shares in the Cerrejón open-pit coal export mine in Colombia for $588mn.
The miner announced on Monday as the sole owner it can focus on the proper decline of its thermal and met coal portfolio while fully committing to emission reduction goals. Production at the thermal coal mine is anticipated to fall significantly by 2030.
The deal is expected to complete during H1 2022. Coal prices have doubled in the past year to record highs so the investment will likely break even over two years.
The company plans to invest more in its copper operations as it manages the abatement of the coal mines, targeting the mid-2040’s.