BHP announces divestment of Cerrejón interest
(Posted on 05/07/21)
BHP has announced that it has signed a Sale and Purchase Agreement with Glencore to divest its 33.3 per cent interest in Cerrejón, a non-operated energy coal joint venture in Colombia, for US$294 million cash consideration.
The transaction has an effective economic date of 31 December 2020. The purchase price is subject to adjustments at transaction completion which may include an adjustment for the dividends paid by Cerrejón to BHP during the period from signing to completion.
Alongside BHP and Anglo American, Glencore currently holds a 33.3 per cent interest in the operation. Glencore intends to acquire both BHP and Anglo American’s holdings.
Subject to the satisfaction of customary competition and regulatory requirements, Glencore would assume full ownership and operating control of Cerrejón. Completion is expected to occur in the first half of the 2022 calendar year.
Selling BHP’s financial interest to a current Cerrejón shareholder who understands the operation represents a strong outcome for Cerrejón and the stakeholders it supports.
A further impairment charge of approximately US$80 million post-tax will be recognised as an exceptional item in the financial results for the second half of the 2021 financial year.
Latest News
Cargill acquires Owensboro Grain Company
(Posted on 05/12/22)Cargill and Owensboro Grain Company, a fifth-generation family-owned soybean processing facility and... Read more
Rio Tinto to strengthen, decarbonise and grow
(Posted on 01/12/22)Rio Tinto is providing an update at its Investor Seminar on progress against its long-term strategy... Read more
BioIron proves successful for low-carbon iron-making
(Posted on 29/11/22)Rio Tinto has proven the effectiveness of its low-carbon iron-making process using ores from its mines... Read more
Rio Tinto, BHP and Fortescue to create safer workplaces
(Posted on 19/11/22)Rio Tinto, BHP and Fortescue are launching an innovative pilot programme aimed at helping to eliminate... Read more
AJ Steel agreement with KEZAD to expand in Abu Dhabi
(Posted on 19/11/22)Leading UAE steel pipe manufacturer and exporter, AJ Steel, has signed an agreement with the integrated... Read more
EU fertilizer industry calls for more comprehensive long-term strategy
(Posted on 13/11/22)Fertilizers Europe has welcomed the recognition of the European Commission that urgent and targeted... Read more
NGFA urge US Congress to prevent rail shutdown
(Posted on 09/11/22)The National Grain and Feed Association (NGFA) in the USA and 192 other members of the Agricultural... Read more
BHP and Rio Tinto to collaborate on new tailings technology
(Posted on 02/11/22)Global miners BHP and Rio Tinto have formed a partnership agreement to accelerate the development of... Read more
Trafigura signs German guaranteed US$800m loan agreement
(Posted on 26/10/22)Trafigura, a market leader in the global commodities industry, has entered into a USD800 million five... Read more
Blastr and Cargill Metals MOU for supply of green steel
(Posted on 26/10/22)Cargill’s metals business and Blastr Green Steel AS, a developer of decarbonized steel supply,... Read more
