Glencore’s Deal for Giant Colombian Coal Mine Ends Up Costing Much Less
- Glencore agreed to buy Cerrejon coal mine in June 2021
- Coal rally means cash payment on completion is $101 million
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Glencore Plc’s purchase of a giant Colombian coal mine has cost the commodities trader and mining powerhouse much less than initially thought after prices of the fuel surged.
The company on Tuesday said it completed the acquisition of the Cerrejon mine, following a deal struck in June to take full control of the asset from partners BHP Group and Anglo American Plc. At the time, Glencore agreed to pay about $588 million, while also taking cash flows for the year. It estimated a final cost of roughly $230 million.