Glencore has completed its acquisition of thermal coal mine Cerrejón, purchasing Anglo American and BHP’s respective 33.3 per cent stakes in the company.
The decision to snap up holdings of its joint venture partners in a $588m deal was made in June last year, and the transaction has now been completed following regulatory approval.
After taking into account the dividends generated by robust 2021 operating cashflows, together with certain other adjustments, the cash payment to be made by Glencore on completion is $101m.
Both BHP and Anglo American let go of their stakes in the project as part of net zero transmission plans, with both commodity giants looking to move away from fossil fuel projects.
In a statement, the multinational miner said: “Glencore’s acquisition of Cerrejón is consistent with our climate change strategy and has been factored into our stated emission reduction targets.”
Glencore claims it remains committed to reducing total emissions footprint by 15 per cent by 2026, 50 per cent by 2035 and we have an ambition of being a net zero total emissions business by 2050.
The group’s operations currently consist of around 150 mining and metallurgical sites and oil production assets.
It has recently pocketed £530m after offloading some of its mines to Evolution Mining.
Miners are under increasing pressure to make their projects more sustainable, with the G20 nations agreeing to phase down coal usage over the next three decades at the COP 26 climate summit in Glasgow last year.