MELBOURNE, Australia--Glencore PLC (GLEN.LN) has reversed plans to close a coal mine in eastern Australia and has put the operation up for sale even as it restarts development at the site amid a rebound in prices.
The mining company said Tuesday it had begun a sale process for its Tahmoor underground mine in the Southern Highlands region of New South Wales state. While that's underway the Swiss commodities giant had recently recommended development activities.
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Glencore, which is one of the world's biggest coal suppliers, last June said it would close the coking-coal operation because a prolonged slump in prices for the steelmaking commodity meant it wasn't economic to keep mining. In August, the company said it wouldn't continue mining beyond 2018.
With the recovery in coal prices, the company said it now believed there were a number of development options that would offer a prospective buyer an opportunity to establish or increase a strategic position Australia's coking-coal industry.
The mine employs about 340 people and last year produced almost 1.8 million metric tons of coal, Glencore said. It estimated the operation has 57 million tons of reserves and a total resource of 650 million tons.
In April, BHP Billiton Ltd. (BHP.AU) and partner Mitsubishi Corp. (8058.TO) approved a US$204 million expansion of a coking-coal mine in central Queensland state to increase production and reduce overall operating costs.
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(END) Dow Jones Newswires
May 08, 2017 22:17 ET (02:17 GMT)