Bert Kaufmann
Glencore, BHP and Anglo American owned the rights to develop the Cerrejon open pit mine in equal shares, according to the text of the release, the terms of the agreements to sell 33.3% stakes were virtually identical.
The deals are expected to close during the first half of 2022, with an estimated payback period of less than two years thereafter. The agreements with BHP and Anglo American are interdependent and subject to various regulatory approvals.
The Cerrejón operation is located in northern Colombia in the department of La Guajira and, in addition to the mine, includes a railway and a port. Cerrejón has gross assets of $2.968 billion and an operating loss of $226 million for 2020.
The company stressed that 100% ownership of the Cerrejón mine would not affect Glencore's climate commitments under the Paris Agreement.
In February 2021, Grupo Prodeco, Glencore's Colombian subsidiary, gave up the mining contracts for the two coal mines and transferred the mining rights to the Republic of Colombia due to the economic inexpediency of the projects.
source: reuters.com
The deals are expected to close during the first half of 2022, with an estimated payback period of less than two years thereafter. The agreements with BHP and Anglo American are interdependent and subject to various regulatory approvals.
The Cerrejón operation is located in northern Colombia in the department of La Guajira and, in addition to the mine, includes a railway and a port. Cerrejón has gross assets of $2.968 billion and an operating loss of $226 million for 2020.
The company stressed that 100% ownership of the Cerrejón mine would not affect Glencore's climate commitments under the Paris Agreement.
In February 2021, Grupo Prodeco, Glencore's Colombian subsidiary, gave up the mining contracts for the two coal mines and transferred the mining rights to the Republic of Colombia due to the economic inexpediency of the projects.
source: reuters.com
