Cerrejon

History

2022: Glencore bought Cerrejon for $588 million

On January 11, 2022, Swiss Glencore announced the purchase of the remaining shares in the world's largest coal mine Cerrejon, becoming its sole owner 100%. A deal worth $588 million was concluded with Anglo American and BHP, which owned a 33.3% stake in Cerrejon.

After accounting for dividends received as a result of steady operating cash flows of 2021, as well as taking into account certain adjustments, Glencore said that upon completion of the transaction it will make a cash payment of $101 million. Anglo American management noted that the completion of the deal marked its final exit from energy coal operations. Glencore also said that the acquisition is related to a strategy to achieve carbon neutrality. So, the company plans to reduce its total emissions by 15% by 2026 and by 50% by 2035.

Glencore acquired Cerrejon for $588 million

Glencore's acquisition of the Cerrejon coal mine in Colombia is in line with our climate change strategy and is factored into our stated emission reduction targets, said CEO Gary Nagle.

Cerrejon is located in northern Colombia in the department of La Guajira and in addition to the mine includes a railway and a port. Cerrejon is a large open-pit coal mine in Colombia, which was opened in 1985, and the location of the mine is located near the border with Venezuela. According to Anglo American and BHP, Cerrejon's resource base is about 5 billion tons, of which 2.1 billion tons as of January 2022 are estimated and have export quality.

Glencore is one of the world's largest commodity traders, including energy, metals and agriculture.^[1]

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