Xstrata Looks to Acquire Colombian Coal Miner
A bid of $8 billion is expected from Xstrata for Drummond’s Colombian thermal coal arm. The Anglo Swiss mining giant is interested in the company which is the second largest coal mining company of Colombia. It is owned by a family business based in Alabama.
Considering that floods in Queensland in Australia have shut down its major coal production in the country the company is looking for alternatives to generate both thermal and coking coal. Prices have surged for both and Xstrata will not want to be left out. Coal prices have seen a 10% hike in the past month alone.
Other mining giants such as Vale from Brazil and the multinational Rio Tinto were also courting the Colombian coal producer but only Xstrata had managed to table a fully financed offer by the deadline given last month.
The timeframe of the auction has been extended by the Bank of America-Merrill Lynch to allow Vedanta Resources and Essar Global, an Indian company time to arrange for financing. The companies have struggled to get the financing so far and Xstrata is the most likely amongst the courters to secure the deal. It would be the first big acquisition for the company after the recession if it succeeds.
Written by
Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.
Please use one of the following formats to cite this article in your essay, paper or report:
APA
Scanlon, Joel. (2019, March 19). Xstrata Looks to Acquire Colombian Coal Miner. AZoMining. Retrieved on January 30, 2026 from https://www.azomining.com/News.aspx?newsID=2416.
MLA
Scanlon, Joel. "Xstrata Looks to Acquire Colombian Coal Miner". AZoMining. 30 January 2026. <https://www.azomining.com/News.aspx?newsID=2416>.
Chicago
Scanlon, Joel. "Xstrata Looks to Acquire Colombian Coal Miner". AZoMining. https://www.azomining.com/News.aspx?newsID=2416. (accessed January 30, 2026).
Harvard
Scanlon, Joel. 2019. Xstrata Looks to Acquire Colombian Coal Miner. AZoMining, viewed 30 January 2026, https://www.azomining.com/News.aspx?newsID=2416.
We're committed to providing free access to quality science. By registering and providing insight into
your preferences you're joining a community of over 1m science interested individuals and help us to
provide you with insightful content whilst keeping our service free.
or
Terms
While we only use edited and approved content for Azthena
answers, it may on occasions provide incorrect responses.
Please confirm any data provided with the related suppliers or
authors. We do not provide medical advice, if you search for
medical information you must always consult a medical
professional before acting on any information provided.
Your questions, but not your email details will be shared with
OpenAI and retained for 30 days in accordance with their
privacy principles.
Please do not ask questions that use sensitive or confidential
information.
Read the full Terms & Conditions.