The Anglo–Swiss multinational commodity trading and mining firm Glencore plc has reportedly increased its stake in two coal mines of Australia, as it continues to raise its energy commodity portfolio. As per trusted sources, Glencore has signed an agreement with Mitsubishi Corporation to buy its stake in two coal mines.

Reportedly, Glencore’s joint venture with Sumitomo Corporation, which is called as GS Coal, is likely to purchase nearly 100 percent of Mitsubishi’s 31 percent stake in the Clermont coal mine in the state of Queensland. The firm has also inked a deal with one of the units of Mitsubishi Corporation to buy its 10 percent interest in the Ulan coal mine in the state of New South Wales.

For the record, some of the prominent large and integrated mining corporations along the likes of Rio Tinto have been moving away from coal in the recent times. However, Glencore has been ramping up its stakes in coal mines as it hopes that Southeast Asian nations would continue to rely on coal as an inexpensive fuel to run power generation facilities.

People familiar with the development claim that Glencore, which is helmed by former coal trader Ivan Glasenberg, is likely to pour in USD 130 million to acquire the Ulan operation. Reportedly, GS Coal will utilize its own funds to purchase the Clermont stake. The total value of both the deals is said to around USD 530 million.

According to a report published by ET Energy World, the deal would result in the Glencore-Sumitomo joint venture’s stake rise to about 81.5 percent in the Clermont mine. Both the deals are anticipated to be concluded in 2019 subject to regulatory approvals.

Reportedly, the company stated that it welcomes the development as Ulan and Clermont operations are well-known manufacturers of high-quality, low-cost thermal coal which is majorly supplied to customers across Asian nations.