The potential sale is in response to strong global demand for high quality infrastructure assets and forms part of Glencore’s wider global debt reduction program, a spokesman told International Coal News.
“The business represents a very attractive opportunity for a wide range of investors,” he said.
“GRail services the majority of Glencore’s coal haulage requirements in the Hunter Valley and is well positioned to meet the long-term needs of much of the industry as a whole.”
GRail was established in 2010 and has grown to become the third largest coal haulage business in Australia. It has played a significant role in improving the overall efficiency of the entire Hunter coal chain, according to the company
GRail owns all assets associated with the rail haulage operations, including locomotives, wagons and supporting equipment.
“We expect the sale process to conclude by Q3 this year,” the company spokesman said.
In 2015, Glencore managed the production of about 51 million tonnes of coal in the Hunter region.
“We have 10 coal mines across seven mining complexes in the region: Bulga; Mount Owen; Liddell; Ravensworth; Mangoola; Ulan and West Wallsend.
“The GRail fleet consists of nine trains.”
