Adani to have "full control” of port facility after purchase
ADANI has finalised an agreement to buy the company which operates the Abbot Point Coal Terminal.
A subsidiary of Glencore had been running the port's operations, despite Adani acquiring a 99 year lease for the port from the state government in 2011.
Glencore has now agreed to sell the shares in APB to Adani's Abbot Point Operations Pty Ltd (APO), with completion of the sale subject to receipt of certain approvals.
In a statement, Adani said they'll now have full control of the facility, with minimal changes expected to current management and employee teams.
"Today's (yesterday's) transition is a key milestone in our well advanced plans for Abbot Point, and is yet another demonstration of Adani's commitment to building a long term future with Queensland," Adani Australia CEO Jeyakumar Janakaraj said.
"This is an exciting and important step forward for employees, their families, the Bowen and surrounding communities and for Queensland, and reflects the vital role that Abbot Point plays in the company's plans to build a long term future in this state."
Anthony Pitt, Director of Logistics and Procurement for Glencore's coal business in Australia, acknowledged the Glencore team's achievements in operating the port.
"Throughout our time as operator, the port has maintained a world class safety and environmental record and has consistently increased the volumes of coal processed and exported to customers around the world", he said.
APB will continue to operate and maintain the Abbot Point Coal Terminal after the share sale, under Adani's ownership.
Adani has invested more than $1.8 billion in the existing terminal at Abbot Point terminal
APO is owned by Adani Ports and Special Economic Zone Limited and will operate as a stand-alone entity from AAPT and Adani Mining. APO shares Adani's core values to ensure worker safety, protect the environment and provide jobs and economic growth for the local community.
APO expects there may be minimal changes to the management team and, upon completion of the deal, the Port's employees will continue to be employed under their current terms. Current users of the Port can be assured that this transition will not impact on the day to day operations and management of the terminal.
Glencore will continue to supply coal for export to the Abbot Point Coal Terminal from its open cut coal mines at Newlands and Collinsville.