A PYMNTS Company

Australia: Glencore Xstrata reportedly mulling deal to combine coal assets

By  |  June 12, 2013
Australia: Glencore Xstrata reportedly mulling deal to combine coal assets

Mining giant Glencore Xstrata is said to be considering a deal with miner Rio Tinto to combine thermal coal assets within Australia. Two unnamed sources have said that the conglomerates are looking for ways to stay ahead in a market currently seeing low prices but high production costs as benchmark coal prices recently hit a three-year low last year. The trend has developed as Australia simultaneously experiences rising labor costs. Both miners kept quiet on the rumored deal. Glencore and Rio Tinto have mines in New South Wales and, according to reports, their combination would reduce labor costs.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.