The coal mines in which Mitsubishi will divest stakes are the Clermont coal mine located in Queensland and the Ulan coal mine in New South Wales. The stakes are held by the Japanese firm’s Brisbane-based subsidiary Mitsubishi Development.
In the Clermont Coal Mine, Mitsubishi will sell its 31.4% stake to GS Coal, which is a 50:50 joint venture formed by Glencore and Sumitomo.
On the other hand, the Japanese firm will sell its stake of 10% in the Ulan coal mine to Glencore’s wholly-owned subsidiary Glencore Coal.
The transaction will enable Glencore to take 100% ownership in the Ulan coal mine, which is located within the Western Coalfields. The coal mine has a production capacity of about 11 million tons per annum.
Mitsubishi said that the transactions are a result of the measures it is implementing to streamline its asset portfolio.
The Japanese trading company, in a statement, said: “The sales are subject to the terms of the Clermont joint venture documents, under which other joint venture participants hold pre-emptive rights, and fulfillment of other conditions, including certain regulatory approvals. The completions of the sales are expected in 2019.”
In the Clermont coal mine, which has been in production since 2010, GS Coal will increase its stake to 81.5% through the transaction. J-Power Australia and J. C. D. Australia are the other stakeholders in the coal mine with stakes of 15% and 3.5%, respectively.
The Clermont coal mine has a production capacity of 12 million tons per year.
Sumitomo, in a statement, said: “This agreement will allow us to continue supply of high quality thermal coal to our end users, adding to our continued commitment to energy security and its stable supply.
“Sumitomo Corp will continue to take action to achieve a low carbon society, based on our belief that climate change is a material concern that has lasting implications to our environment, society, and corporate activities for generations, while we continue to fulfill of our social mission of stable energy supply.”
Glencore and Sumitomo entered into the Clermont coal mine by acquiring a stake of 50.1% from Rio Tinto for $1.01bn in 2013.
