Glencore has put its Australian coal train fleet on the block, as part of its push to protect its balance sheet in the tough commodities environment.
The Switzerland-based commodities producer and trader hopes to fetch as much as A$1.5 billion ($1.1 billion) dollars for its GRail business, as it continues an aggressive debt-reduction program.
"Glencore is confident of fetching a sale price of above A$1 billion based on recent infrastructure sales in Australia," the company's Australian spokesman Francis De Rosa said.
The Hunter Valley rail business consists of nine trains, which move coal from mines in New South Wales to port operations on Australia's eastern seaboard.
Reports suggest Glencore will offer its trains to buyers with a contract that guarantees 40 million tons of carriage per year, but it's unclear if any potential offers have been made for the highly strategic asset.
Glencore hopes to complete a transaction by the end of the third quarter.
Glencore, which produces and trades more than 90 commodities, has been hit hard by a global downturn in the sector.