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Australia: Glencore Xstrata reportedly mulling deal to combine coal assets

By  |  June 12, 2013

Mining giant Glencore Xstrata is said to be considering a deal with miner Rio Tinto to combine thermal coal assets within Australia. Two unnamed sources have said that the conglomerates are looking for ways to stay ahead in a market currently seeing low prices but high production costs as benchmark coal prices recently hit a three-year low last year. The trend has developed as Australia simultaneously experiences rising labor costs. Both miners kept quiet on the rumored deal. Glencore and Rio Tinto have mines in New South Wales and, according to reports, their combination would reduce labor costs.

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    Full Content: Reuters

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