Glencore To Sell GRail Coal Haulage To Genesee & Wyoming Unit For A$1.14 Bln

(RTTNews) - Commodities trader Glencore International Plc. (GLCNF.PK, GLNCY.PK, GLEN.L) Thursday said it has reached agreement with Genesee & Wyoming Australia (GWA), a unit of freight railroads operator Genesee & Wyoming Inc. (GWR), to sell its Glencore Rail (GRail) coal haulage business in the New South Wales Hunter Valley for A$1.14 billion.

The closure of the transaction is subject to FIRB approval.

Upon completion, GWA will service the majority of Glencore's coal haulage requirements in the Hunter Valley via a 20 year contract for the haulage of export coal to the Port of Newcastle.

The company said GRail currently hauls approximately 40 million tonnes per year of Glencore's Hunter Valley coal production to the Port of Newcastle.

The sale of the GRail business forms another significant part of Glencore's debt reduction program.

Peter Freyberg, Head of Glencore's Global Coal Assets, said, "We established GRail in 2010 and have steadily grown it to become the third largest coal haulage business in the country. It has played a very important role in reducing costs and improving the overall efficiency of Australia's largest coal chain in the Hunter Valley."