HVO and Hail Creek acquisitions boosting Glencore output

THERMAL coal giant Glencore has increased coal production in the year to date by 8% to 104 million tonnes mainly thanks to its acquisition from Rio Tinto of a share of the Hunter Valley Operations in New South Wales and the Hail Creek mine in Queensland.
HVO and Hail Creek acquisitions boosting Glencore output HVO and Hail Creek acquisitions boosting Glencore output HVO and Hail Creek acquisitions boosting Glencore output HVO and Hail Creek acquisitions boosting Glencore output HVO and Hail Creek acquisitions boosting Glencore output

Glencore's Hail Creek mine in Queensland.

Glencore's coking coal production of 6.1Mt was 700,000t higher than the previous corresponding period while production of thermal and semi-soft coal was 4.6Mt higher at 59.1Mt.

The commodity trader reached agreement in 2018 to acquire Rio Tinto's 82% interest in the Hail Creek coal mine and adjacent coal resources, as well as its 71.2% interest in the Valeria coal resource in central Queensland for US$1.7 billion.

Yancoal completed the establishment of its 51%-49% joint venture with Glencore Coal in relation to Hunter Valley Operations two months later.

To establish the joint venture, Glencore acquired a 16.6% interest in the HVO JV from Yancoal for approximately US$429 million and a 32.4% interest in the HVO JV directly from Mitsubishi Development.

The HVO JV is jointly controlled by Yancoal and Glencore through a joint-venture management committee, and managed by an independent management team appointed by the JVMC.

Both companies have agreed to pursue operational synergies under the terms of the transaction documents.