Commodities giant Glencore PLC (GLEN.LN) is buying a 49% stake in an Australian coal mine from its Chinese owners a month after failing in a bid to buy the operations outright from Rio Tinto PLC (RIO.LN).
Glencore said Thursday that it will pay Yancoal Australia Ltd $1.14 billion plus around $67 million in royalty payments over five years for the stake in the Hunter Valley Operations coal mine in New South Wales.
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Glencore and Yancoal will form a joint venture to operate the mine.
Rio Tinto last month rebuffed a $2.5 billion offer for the mine by Glencore and recommended that shareholders approve a previous $2.45 billion bid by Yancoal, which is part of the Yanzhou Coal Mining Company.
Glencore shares at 1146 GMT, up 3 pence, or 1%, at 333 pence valuing the company at 47.95 billion pounds ($63 billion).
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(END) Dow Jones Newswires
July 27, 2017 08:17 ET (12:17 GMT)