Glencore to sell Aussie rail coal haulage business for $1.14bn

Anglo-Swiss miner Glencore has agreed to sell its rail coal haulage business in New South Wales' Hunter Valley for $1.14bn to Genesee & Wyoming Australia.

The FTSE 100 company agreed to sell Glencore Rail, the third largest coal haulage business in Australia, to GWA, subject to approval from the foreign investment review board, as part of its programme to reduce its debt.

After the deal goes through GWA will service the majority of Glencore's coal haulage in the Hunter Valley for a 20-year contract to export coal to the Port of Newcastle.

The business hauls about 40m tonnes a year of Hunter Valley coal production to the port.

Peter Freyberg, head of Glencore's global coal assets, said GRail had played an important role in reducing costs and improving the overall efficiency of Australia's largest coal chain in the Hunter Valley.

“We are very pleased with the outcome of the sale process and look forward to continuing our constructive working relationship with Genesee & Wyoming in the years ahead."