May 17, 2020

Glencore Takes Over Operation for Rio Tinto at Clermont Coal Mine

Rio Tinto
Clermont mine
Mining news
Glencore
Admin
2 min
Clermont coal mine in Queensland, Australia
Mining giant Glencore has officially taken over management of the Clermont coal mine in Queensland, Australia after completing the $1.015 billion acquis...

Mining giant Glencore has officially taken over management of the Clermont coal mine in Queensland, Australia after completing the $1.015 billion acquisition from Rio Tinto. Although the sale agreement was sign in October 2013, the two sides have been patiently awaiting certain regulatory approvals.  

According to a Glencore spokesperson, the decision to purchase the Clermont mine reflected the company’s focus on developing high quality assets that complement existing operations and market capabilities.

"It is a producer of high-energy thermal coal, with minimal capital requirements," the spokesperson said.

In October 2013 when the deal was signed, Glencore coal assets manager Peter Freyberg said the company expects to earn an attractive financial return from the purchase.

"As well as being Australia's third-largest thermal-coal mine, Clermont is structurally low-cost," Freyberg said.

Glencore will now focus its attention on its new site and review operations to find synergies in production and marketing with its existing Queensland operations.

Opened in 2010, the open-pit mine currently produces an output of 12 million tons of coal annually. Glencore is expected to expand production to 165 million tons in the next 16 years.

With the purchase of Clermont, Rio Tinto chief financial officer Chris Lynch said the company will continue in the optimization of its portfolio.

“It also demonstrates our focus on strengthening our balance sheet and taking a disciplined approach to allocating capital across the group,” Lynch said.

Share article

Jun 29, 2021

Vale invests $150mn to extend life of Manitoba operations

Vale
Nickel
Manitoba
battery metals
2 min
Vale’s $150mn investment in operations at Thompson, Manitoba will extend mine life by 10 years

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.

Share article