Mining NewsMining NEWS - Glencore exercise of Prodeco option (3/9/2010)Xstrata plc announces that it received formal notification on 4 March 2010 by Glencore International AG (“Glencore”) of Glencore’s exercise of its option to acquire the Prodeco coal operations. Under the option agreement, Glencore will pay Xstrata $2.25 billion in cash upon completion of the sale to Glencore pursuant to the exercise of the option, plus any profits accrued but not distributed to Xstrata during the period 1 January 2009 to the completion date and the net balance of any cash invested by Xstrata.Mick Davis, Xstrata plc Chief Executive, said: “The acquisition of the Prodeco operations last year facilitated an orderly rights issue process during very challenging market conditions. Glencore’s decision to exercise its option provides Xstrata’s shareholders with a robust cash return on the initial purchase price and provides additional financial flexibility as Xstrata’s capital expenditure programme ramps up to deliver 50% volume growth by 2014, including a 50% increase in coal and copper production and a doubling of current nickel volumes.” Source: Xstrata http://www.xstrata.com/media/news/2010/03/05/0700CET/  Tags: Mining News, Mining Directory, Mining Equipment, Mining Jobs, Mining Contractors, Mining Services + More Mining News |
