Glencore, Peabody Energy Join Forces, Agree to Merge Hunter Valley Coal Mines
Two of the biggest mining companies in Australia have decided to join forces. Swiss commodities trader Glencore has agreed to merge its United Colliery coal mine in Hunter Valley with Peabody Energy’s Wambo mine to form a jointly managed project.
The merger, which is the first of its kind in the region, is intended to produce six million tons a year of coal from 2017, with the two partners entitled to half of the output each. The joint venture excludes Peabody’s underground mine at Wambo.
According to the agreement, Glencore will manage the mining operations while Peabody will continue to operate coal washing and loading facilities.
The joint venture will allow Glencore to recoup tonnage lost from declining volumes produced at its existing mines in the Hunter Valley. For Peabody, the deal will help to improve productivity as well as cutting costs and extending the life of both mines.
"Peabody continues to take positive steps to further reduce costs, improve our competitive position and create value," said Peabody Energy president and chief operating officer Glenn Kellow.
The JV will also help preserve jobs and investments in a region that has suffered from the coal downturn over the past few years, according to The Construction, Forestry, Mining and Energy Union.
"It is very welcome news at a time when our region is suffering from substantial job losses in the coal industry," CFMEU district president Peter Jordan said in a statement.
The JV will see miners employed at Peabody’s existing Wambo open cut mine transfer across to the new operations, which Glencore will manage.
Newmont acquires Canada’s GT Gold in $325mn deal
Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.
“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”
Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.
With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.