News: RIO Glencore agrees to acquire 49 pct interest in Hunter Valley Ops

July 27 (Reuters) - Glencore Plc GLEN.L

• SIGNED AGREEMENTS WITH YANCOAL AUSTRALIA REGARDING ACQUISITION OF A 49% INTEREST IN THE HUNTER VALLEY OPERATIONS (HVO) COAL MINE IN NSW
• GLENCORE SIGNED AGREEMENTS TO FORM A JOINT VENTURE (JV) FOLLOWING YANCOAL'S ACQUISITION OF COAL & ALLIED (C&A) FROM RIO TINTO
• WILL PAY CASH OF $1.14 BILLION PLUS 27.9% SHARE OF $240 MILLION NON-CONTINGENT ROYALTIES OVER 5 YEARS, 49% OF PRICE CONTINGENT ROYALTIES PAYABLE BY YANCOAL TO RIO TINTO
• TO BUY 16.6% INTEREST IN HVO DIRECTLY FROM YANCOAL; CO TO WORK TO ACQUIRE MITSUBISHI'S 32.4% INTEREST IN HVO TO ACHIEVE GLENCORE'S 49% STAKE
• HAS ALSO AGREED TO SUBSCRIBE FOR US$300M WORTH OF SHARES IN YANCOAL'S EQUITY RAISING
• EXPECTS THE TRANSACTION TO CLOSE WITHIN SIX MONTHS
• WILL PROVIDE OPERATIONAL AND SUPPORT SERVICES TO THE HVO JV
• TRANSACTION WILL BE FUNDED FROM GLENCORE'S EXISTING CASH RESOURCES AND COMMITTED FACILITIES
• TO BE EXCLUSIVE MARKETING AGENT FOR HVO COAL SALES INTO JAPAN, SOUTH KOREA, OTHER COUNTRIES EXCLUDING CHINA, TAIWAN , THAILAND AND MALAYSIA
• COMBINED PORTFOLIO OF MINES IN THE HUNTER VALLEY, INCLUDING HVO, WILL HAVE COAL PRODUCTION CAPACITY OF 69 MILLION TONNES PER ANNUM

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