A share of Glencore’s NCA coal project, which includes the Newlands and Collinsville mines in Central Queensland, are up for sale as Japanese investors, Itochu and Sumitomo, look to reduce their stake in the project.
The Business Spectator is reporting today that Itochu and Sumitomo have instructed advisers to divest 45 per cent interest in the project which includes berth at the Abbot Point coal port.
The two firms are hoping to secure a sale by the end of the year, with the Business Spectator calling the move, “the latest example of overseas investors scaling back mining bets amid a deep downturn in commodity prices.”
Australian thermal coal is currently fetching just $US70 a metric tonne on the global market; a far cry from the price enjoyed at the height of the commodities boom just 6 years ago when it was $US190.
The Newlands and Collinsville mines can produce up to 17 million metric tonnes of thermal coal used in power generation and coking coal for steelmaking a year.