Xstrata Offers to Sell 20% of Australian Coal Project (XSRAY, GLNCY)

Mining giant Xstrata plc (OTC: XSRAY) wants to sell 20% of its $6.44 billion Wandoan coal mine project to a strategic partner in exchange for an equal percentage of the coal that would be mined from the project. It is not clear what effect such a sale would have on the proposed merger between Xstrata and Glencore International (OTC: GLNCY).

There are several new coal projects afoot in Australia, all aimed at selling coal to China. Xstrata currently has two Japanese partners in the Wadoan project, each with a 12.5% stake. The project has not yet been approved by the provincial government, but approval is expected.