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(Bloomberg) -- Liberty House Group’s GFG Alliance joint venture, which bought Australian steel assets last year, is nearing an acquisition of Glencore Plc’s Tahmoor coal mine in the country, a person with knowledge of the matter said.
A deal for the underground mining operation in New South Wales state could be announced as soon as Tuesday, according to the person, who asked not to be identified because the information is private. The operation, located about 75 kilometers (47 miles) southwest of Sydney, could fetch as much as A$500 million ($390 million), people with knowledge of the matter said in July.
GFG last year added steel operations to iron ore mines in Australia, giving it the capacity to produce 1.2 million metric tons of steel a year. Liberty House Executive Chairman Sanjeev Gupta said in a September interview that the London-based metals producer and trader has been targeting deals to add coal supply to feed those assets.
Representatives for Glencore and Liberty House declined to comment.
Glencore Chief Executive Officer Ivan Glasenberg told investors last month the producer was in detailed negotiations on a potential sale of Tahmoor. GFG has studied plans to use output from Tahmoor to feed its operations in South Australia, which include the Whyalla steel works, a person with knowledge of the matter said in July.
Glencore had announced plans in 2016 to close Tahmoor, before a surge in prices for coking coal convinced the producer to sell the operation. The asset, which produces mainly hard coking coal for steelmaking, produced 1.8 million metric tons in 2016 and holds 57 million tons of reserves, according to filings.
Peter Grauer, the chairman of Bloomberg LP, the parent of Bloomberg News, is the senior independent non-executive director at Glencore.
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