By Elizabeth Low, Weng Yile, Nathan Richardson and E. Shailaja Nair

March 22, 2018 - Glencore has agreed to acquire Rio Tinto's 82% interest in the Hail Creek coal mine and adjacent coal resources as well as its 71.2% interest in the Valeria thermal coal resource in Queensland, Australia, for a total cash consideration of $1.7 billion, the two mining giants said Tuesday. 

The acquisition is subject to regulatory approval and is expected to be completed in the second half of 2018, Glencore said in a press release.

The rest of Hail Creek is owned by Nippon Steel Australia (8%), Marubeni Coal (6.67%) and Sumisho Coal Development (3.33%).

Each joint venture partner has the right to sell its share to Glencore through a "tag-along" right with respect to the transaction, which could result in additional consideration of up to $340 million, Glencore said.  

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