Glencore to sell Tahmoor

GLENCORE has hung the for sale sign outside its Tahmoor underground mine, which last year produced nearly 1.8 million tonnes of saleable coking coal.
Glencore to sell Tahmoor Glencore to sell Tahmoor Glencore to sell Tahmoor Glencore to sell Tahmoor Glencore to sell Tahmoor

Glencore's Tahmoor Colliery in NSW.

Lou Caruana

The New South Wales mine employs about 340 people including contractors from the Southern Highlands. 

“Our Tahmoor mine is an established, stable operation but has minimal operational synergies with the rest of our NSW coal business located in the Hunter Region,” the company said.

“In August 2016, we announced that we would not continue mining beyond 2018 on the basis that ongoing operations would not meet our internal investment criteria. 

“However, given the increase in coking coal prices, we have recently recommenced development for additional longwalls blocks in the North West area.” 

Glencore has also requested updated assessment requirements for the Tahmoor South Project.

“We believe the asset has a number of development options for the future and presents a potential buyer with the opportunity to establish or increase a strategic position in the Australian coking coal industry,” the company said.

The Tahmoor mine has 57Mt of reserves and 650Mt total resource, presenting opportunities for significant future development; an experienced management team and a highly skilled workforce; a record of strong operational performance and cash generation throughout the commodity cycle; and efficient logistics and transport systems and established, long-term relationships with customers across Asia.

Glencore said the mine also had strong links with the local communities developed over almost 40 years of operation as well as highly valued product in the market.

“It will be business as usual at the mine until and unless a sale is agreed,” it said.