Glencore sells Australian coal haulage business for A$1 bn

Swiss commodities giant Glencore on Thursday said it was selling its Hunter Valley coal haulage business to an American firm for Aus$1.14 billion (US$870 million) as it pushes to reduce its daunting debt mountain. Glencore in August posted first-half losses of US$369 million, and has been reining in spending, scrapping dividends and closing operations across the world amid a commodity price slump. The trader and miner had been battling to avoid collapsing under debt that stood at some US$30 billion in 2015. Glencore's head of coal assets Peter Freyberg said his firm welcomed the sale of its Glencore Rail (GRail) coal haulage business, the third-biggest in Australia, in Hunter Valley in New South Wales state to the Australian subsidiary of US rail operator Genesee & Wyoming. The deal, which is subject to approval by Australia's Foreign Investment Review Board, will see Genesee & Wyoming Australia manage most of Glencore's coal haulage requirements in the region for the next two decades. Genesee & Wyoming Australia said it already operates almost 5,000 kilometres (3,100 miles) of rail track in South Australia state and the Northern Territory.