Glencore snatches Rio’s Australian coal mine in $1.7bn deal

Miner and commodities trader Glencore (LON:GLEN) has bought Rio Tinto’s (ASX, LON:RIO) Hail Creek coal mine in Australia for $1.7 billion, increasing the Swiss firm’s presence in the coal sector just as rivals move away from the fuel.

The deal, announced by both companies Tuesday, follows Glencore's acquisition last year of half of Rio's Hunter Valley coal operations, also in Australia, for $1.1 billion.

Glencore is already the world's No.1 exporter of thermal coal used for power stations, and Hail Creek will give the company a bigger stake in metallurgical coal used in the making of steel.

More to come…

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