Glencore flogs Australian coal haulage business
Glencore has agreed to sell its Glencore Rail (GRail) coal haulage business to Genesee & Wyoming Australia (GWA), for AU$1.14bn (£712m).
The FTSE-listed miner said the sale was "another significant part of Glencore's debt reduction programme".
"We established GRail in 2010 and have steadily grown it to become the third largest coal haulage business in the country," said Peter Freyberg, head of Glencore's global coal assets.
"It has played a very important role in reducing costs and improving the overall efficiency of Australia's largest coal chain in the Hunter Valley. We are very pleased with the outcome of the sale process and look forward to continuing our constructive working relationship with Genesee & Wyoming in the years ahead."
Upon completion, GWA will service the majority of Glencore's coal haulage requirements in the Hunter Valley via a 20 year contract for the haulage of our export coal to the Port of Newcastle.
Other options Glencore is pursuing in a bid to drive down debt include the sale of its Vasilkovskoye gold mine in Kazakhstan, according to reports.