Glencore announces $1.7bn Rio Tinto coal mine deal

Switzerland-headquartered mining major Glencore will acquire diversified miner Rio Tinto’s 82% interest in the Hail Creek coal mine and adjacent coal resources, in Queensland, as well as a 71.2% interest in the Valeria coal resource for $1.7-billion in cash, the company announced on Tuesday. Nippon Steel Australia, Marubeni Coal and Sumisho Coal Development own the remaining 18% of the Hail Creek mine and each joint venture partner has the right to sell its share to Glencore through a "tag-along" right, which could result in additional consideration of up to $340-million.