Glencore to buy out BHP, Anglo in Colombian coal mine

Diversified miner Glencore GLEN.L said on Monday it has agreed to buy out its partners' stakes in Colombia's thermal coal mine Cerrejon from BHP BHP.LBHP.AX and Anglo American AAL.L.

Glencore, which is expected to pay an aggregate price of $588 million for the deal and a final one of $230 million, sees production volumes at the mine decline materially by 2030.

Thermal coal miners have been struggling to find investor favour amid growing climate concerns and a shift towards sustainable investing, with global mining giants offloading such assets as they transition out of the most polluting fossil fuels.

Glencore said it has reviewed the impact of owning 100% of Cerrejón and expects its climate commitments will not be compromised by the partner buy-out.