The acquisition would also ensure that Glencore got access to port infrastructure for the export of its coal, it said in a statement.

"The transaction also secures access to an eventual 1.5 million metric tonnes of export allocation in Phase V of the Richards Bay Coal Terminal," it said.

Richards Bay is currently the world's largest coal shipping facility.

Umcebo’s has an annual production capacity of 7.2 million tonnes of thermal coal from its three operating coal mines and a stand-alone wash plant.

Glencore is also pursuing South Africa’s Optimum Coal – which also has a presence at Richards Bay -- with a consortium that includes local interests and values the company at $US1.2 billion.

The director of Glencore's coal and coke division Tor Peterson told The Times : "Optimum's high quality, long-life coal assets and significant presence at Richards Bay Coal Terminal would be an attractive addition to our existing South African coal business."

"We expect strong Chinese and Indian imports and concerns surrounding nuclear generation capacity to result in sustained underlying demand for coal," he said.

Optimum owns South Africa's third largest open-cut coalmine and is its sixth largest producer as well as being a major coal exporter.