Glencore completes acquisition of Cerrejón mine in Colombia

Glencore refers to its announcement of 28 June 2021, in which it announced its intention to acquire Anglo American’s and BHP’s respective 33.3% interests in Cerrejón. Following receipt of the relevant regulatory approvals, the transaction has been completed.

The purchase price consideration of c.$588 million was based on an economic effective date of 31 December 2020. After taking into account the dividends generated by robust 2021 operating cashflows, together with certain other adjustments, the cash payment to be made by Glencore on completion is c.US$101 million.

Glencore’s acquisition of Cerrejón is consistent with its climate change strategy and has been factored into our stated emission reduction targets. Glencore is committed to reducing its total emissions footprint by 15% by 2026, 50% by 2035 and it has an ambition of being a net zero total emissions business by 2050.

Ivan Glasenberg, CEO of Glencore, said: “Glencore has been involved with Cerrejón for more than 20 years. We know the asset well and believe that we are the most responsible steward for Cerrejón at this stage of its lifecycle.

“Disposing of fossil fuel assets and making them someone else’s issue is not the solution and it won’t reduce absolute emissions.

“We are confident we can manage the decline of our fossil fuel portfolio in a responsible manner that is also consistent with meeting the goals of the Paris Agreement, as demonstrated by our strengthened total emission reduction targets.”