Glencore and Rio Diverge on Coal with $1.7 Billion Mine Deal

Glencore Plc agreed to buy two of Rio Tinto Group’s last remaining coal assets for $1.7 billion, underscoring the differing views of the mining giants toward the world’s dirtiest fuel.

Glencore will purchase Rio’s 82 percent stake in the Hail Creek coal mine and its majority interest in the Valeria resource in Australia for $1.7 billion in cash, the companies said March 20. Rio separately said it will also buy back as much as $2.25 billion of bonds as part of a plan to reduce debt.

The deal will leave London-based Rio owning just one operating coal mine, while Glencore, ...