Anglo American continues coal divestments

PERTH (miningweekly.com) – Diversified major Anglo American on Monday announced it would divest of its 70% interest in the Foxleigh metallurgical coal mine, in Queensland.

The company has entered into a sale and purchase agreement with a consortium led by Taurus Fund Management. The transaction would be effected through a share sale in Anglo American subsidiaries, which hold the Foxleigh mine.

While the terms of the transaction remained confidential, Anglo American noted that the transaction was subject to a number of conditions precedent.

Anglo American in 2007 spent $620-million to acquire a 70% interest in the Foxleigh opencut mine, which delivered 1.86-million tonnes of saleble production to Anglo American’s bottom line in 2015.

Korean steel company Posco and the Japanese trading and mining investment company Itochu hold the remaining 20% and 10% interests respectively.

The divestment of the Foxleigh mine comes after Anglo American earlier announced it would narrow its focus to diamonds, platinum and copper assets, with the miner pointing out that it would also dispose of its Moranbah and Grosvenor metallurgical coal projects in Australia.

Anglo American in January entered into a sales agreement for its Callide thermal coal mine, also in Queensland, selling the asset to Batchfire Resources. It also sold its Dartbrook coal mine, in New South Wales, to Australian Pacific Coal, in December last year, in a deal valued at A$50-million. Anglo said in February that it was assessing its options for Drayton and Drayton South, which had failed to win expansion approval.