Glencore to acquire Xstrata’s Colombian coal operations

Brisbane (Energy Publishing) - Global commodities producer Glencore will exercise its option to acquire Xstrata’s Prodeco coal operations in Colombia.

Glencore, which hold a 34.5% interest in Xstrata, will pay the company US$2.25B in cash, plus any profits accrued but not distributed to Xstrata from 1 January 2009 to the completion date of the sale, as well as the net balance of any cash invested by Xstrata.

The Prodeco operations comprise the Calenturitas and La Jagua open-cut thermal coal mines, export port facilities and a 39.8% share in a Colombian railway.

In 2009, the Prodeco operations produced 10.5Mt of coal and generated an EBITDA of US$259M.