Xstrata in $500m deal to expand coking coal

MINER Xstrata, which has agreed to a merger with trader Glencore, expanded its coking coal operations in Canada’s British Columbia yesterday with the $500m (£316.6m) purchase of assets from oil explorer Talisman Energy.

Xstrata has been building its presence in the Peace River coalfield, in northern British Columbia, since acquiring First Coal last August. The miner said it would pay cash for Talisman’s Sukunka deposit in a deal set to close this month. Sukunka, a hard coking coal deposit, is adjacent to Xstrata’s existing licenses and tenements in the area and has a coal resource of £236m tonnes in the measured and indicated categories.