Glencore (LSE:GLEN) and Peabody Energy (NYSE:BTU) are considering a joint bid for coal assets in Venezuela’s Zulia state.
The companies are examining a potential arrangement with Venezuelan authorities, according to Reuters, citing a Bloomberg report based on people familiar with the discussions.
Meanwhile, US investment firm Heeney Capital is separately considering a bid with privately held coal producer Drummond Company.
The discussions have reportedly focused on securing operational control and rights to purchase production rather than acquiring the mines outright.
No binding agreements have been announced. The assets involved, potential investment amounts, production targets, and proposed timetable have also not been disclosed.
Zulia has historically been the centre of Venezuela’s coal industry, with operations at the Paso Diablo and Mina Norte mines. Production at both sites resumed in December 2024 after being suspended for several years.
The companies and Venezuelan Government have not publicly confirmed the reported negotiations.
The potential bids come as Venezuela seeks foreign investment across its mining and energy industries.
Glencore is a diversified resources producer and commodity marketer. Peabody operates thermal and metallurgical coal mines in the US and Australia.
Write to France Pinzon at Mining.com.au
Main image: Glencore
