May 17, 2020

Glencore sells rail business to Genesee & Wyoming Australia

mining
glencore rail
Glencore
hunter valley
Dale Benton
2 min
Glencore sells rail business tp Genesee & Wyoming Australia
Earlier this month, Swiss-based mining giant Glencoreannounced the sale of its coal haulage railway in Australia.

Glencore Rail (GRail) will be sold to...

Earlier this month, Swiss-based mining giant Glencore announced the sale of its coal haulage railway in Australia.

Glencore Rail (GRail) will be sold to the global rail service provider Genesee & Wyoming Australia for a total of A$1.14bn.

As part of the deal, the company will service most of Glencore’s coal haulage needs in the Hunter Valley over a 20-year contract.

The deal represents GWA’s bid to strengthen its nationwide footprint in Australia as it creates a significant presence in the Hunter Valley coal supply chain in New south Wales. The complete transaction will close on December 1 2016, subject to Australian Foreign Investment Review Board approval.

GRail provides haulage and logistics services for approximately 40 million tonnes per year of steam coal.

Through the contract, GWA will hold rights to exclusively haul all coal produced at GC’s existing mines in the Hunter Valley to Port of Newcastle and will have minimum guaranteed volumes over the first 18 years.  

GRail includes nine train sets, which consists of 30 locomotives and 894 wagons.

GW owns or leases over 120 freight railroads worldwide, organised into 10 operating regions with approximately 7,200 employees and more than 2,800 customers.

Specifically, GWA provides rail freight services in New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line.

With the 2010 acquisition of the Tarcoola-to-Darwin railway, Genesee & Wyoming Australia Pty Ltd became the largest of the 11 Genesee & Wyoming operating regions around the world.

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May 8, 2021

Global iron ore production to recover by 5.1% in 2021

Iron ore
BHP
Anglo American
GlobalData
2 min
After COVID-19 hit iron ore output by 3% 2020, GlobalData analysis points to 5.1% uptick in 2021

Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected  to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.

Iron Ore

Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.

“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”

BHP

Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.

Anglo American

Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”

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