Glencore has agreed to sell the shares in Abbot Point BulkCoal Pty Ltd (APB) to Adani’s Abbot Point Operations Pty Ltd (APO), with completion of the sale subject to receipt of certain approvals, according to a statement from Glencore.
Abbot Point has currently one operating terminal, Adani Abbot Point Terminal. The terminal was acquired by the Adani Group by way of a 99-year lease from the Queensland Government on June 1 2011. Adani has invested more than $1.8 billion in the existing terminal at Abbot Point terminal (T1).
Since that time, the terminal has been operated by APB under an operations and maintenance agreement with Adani Abbot Point Terminal Pty Ltd (AAPT). APB is a subsidiary of the Glencore group of companies.
APB will continue to operate and maintain the Abbot Point Coal Terminal after the share sale, under Adani’s ownership.
APO is owned by Adani Ports and Special Economic Zone Limited and will operate as a stand-alone entity from AAPT and Adani Mining.
The statement says there may be changes to the management team, but the ports employees would continue to be employed under their current terms.
The statement goes on to say the transition would not impact on the day-to-day operations of the terminal.
Glencore will continue supplying coal for export to the Abbot Point Coal Terminal from its open cut coal mines at Newlands and Collinsville.
This article originally appeared on ABHR affiliate site Lloyd’s List Australia.