Glencore sells rail business to Genesee & Wyoming 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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Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.