Glencore to Buy Out JV Partners' Stake in Cerrejon Mine

SEATTLE (Scrap Monster): Glencore announced its decision to buy out the stakes owned by joint venture partners, BHP and Anglo American, in the Cerrejon thermal coal mine in Colombia. It will pay $588 million in return for the combined stake of 66.6% owned by the partner companies. The deal is expected to complete in H1 2022, subject to various necessary regulatory approvals.

The long-term relationship of Glencore with Cerrejon along with its comprehensive knowledge of the asset has forced the company to acquire full ownership in the mine. The alternative acquisition of the stake by one or more new JV partners may compromise the sustainable operation of the mine and may result in extension of production beyond the current mining concessions. The 100% stake purchase will not compromise on previously announced climate commitments.

Ivan Glasenberg, CEO, Glencore said that the company is confident of managing the decline of its fossil fuel portfolio in a responsible manner, consistent with the goals of the Paris Agreement. The stake purchase defies earlier reports that Glencore was looking to walk away from the asset, he added.

The transaction marks Anglo American’s complete exit from thermal coal. BHP aims to completely offload its thermal coal assets before end-2022.

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