Glencore releases plans for massive coal flotation
The Swiss-based commodities trading company, Glencore, has unveiled plans for its long awaited SFr3.8 billion ($2.2 billion) flotation of its Australian and South African coal assets.
Glencore, with its headquarters in canton Zug, plans to sell at least 55 per cent of Enex Resources, described as the world's largest coal exporter.
Glencore owns 11 mines in Australia and 14 in South Africa, which produced 40 million tonnes of thermal coal last year. Demand for coal is expected to grow by 30 per cent by 2005.
The company's chief executive-elect, Ivan Glasenberg, said the share offering follows intense consolidation in the industry. Four major companies control three quarters of coal assets in Australia and South Africa.
After the spin-off, Enex is expected to be valued among Australia's top 40 companies.
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