Sam Walsh
Photo by: Bloomberg
PERTH (miningweekly.com) – Multi-commodity miner GlencoreXstrata will have to put in a significant offer for the Rio Tinto coal assets in Australia if it is to acquire those.
This is the message from Rio Tinto CEO Sam Walsh, who told journalists at the opening of its latest Process Excellence Center, in Brisbane, that the company considered its coal assets long life, quality operations.
Local newspapers The Australian and the Sydney Morning Herald reported that Walsh would not be a forced seller and quoted the Rio Tinto CEO as saying that those interested should put a “worthwhile proposal” to the company.
GlencoreXstrata CEO Ivan Glasenberg has previously expressed the company’s interest in gaining Rio’s coal assets in Australia, revealing that it was in talks with the diversified miner.
GlencoreXstrata has in fact already moved on some of Rio’s coal assets, with the miner in October last year signing a $1.05-billion sales agreement to gain a 50.1% stake in Rio’s Claremont thermal coal project, in Queensland.
Under the agreement, GlencoreXstrata and its joint venture (JV) partner Sumitomo Corporation would each hold a 25.05% economic interest in the mine, with GlencoreXstrata assuming operational management and marketing of the JV.
Clermont is a large-scale opencut mine producing high energy thermal coal with relatively low ash. It is fully capitalised and current saleable production is 12-million tonnes a year, making it Australia’s third-largest thermal coal mine.
Glasenberg is keen to boost the company’s coal position, as demand was expected to remain solid in key regions. In Asia, coal remains the prime choice to fuel economic growth, he said earlier in March.
Meanwhile, Rio on Thursday unveiled the latest phase of its Mine of the Future technology programme in the form of the Processing Excellence Centre, that would enhance the monitoring and operational performance of the company’s international copper and coal operations.
The facility would examine processing data from seven Rio operations across the globe, with an expert mineral processing team delivering technical initiatives and solutions to mine sites in Mongolia, the US and Australia about how to maximise productivity and improve performance.
“The Processing Excellence Centre marks another important step in the roll-out of our exciting Mine of the Future programme,” Walsh said.
“By continuing to develop and deliver a suite of next-generation systems and technologies for our operations, we are ensuring that Rio continues to lead the industry in delivering considerable value through technology. These innovations will significantly improve productivity, be better for the environment and be safer for our people.”