Anglo American to sell Callide coal mine in Australia

19 January 2016 (Last Updated January 19th, 2016 18:30)

Anglo American has signed an agreement to sell its 100% interest in the Callide thermal coal mine in Queensland, Australia, to Batchfire Resources.

Anglo American has signed an agreement to sell its 100% interest in the Callide thermal coal mine in Queensland, Australia, to Batchfire Resources.

Callide comprises an open-pit thermal coal mine, as well as associated processing infrastructure that produced 7.6Mt of coal in 2014.

Callide mine supplies low sulphur, sub-bituminous thermal coal primarily for Queensland's domestic power generation. It comprises the Southern area of Dunn Creek, Trap Gully, the Hut pits and the Boundary Hill pit.

"The transaction remains subject to several conditions precedent, and its terms are confidential."

The company sold 4.7Mt of the coal produced to two adjacent power stations under long-term contracts.

In the first nine months of 2015, the mine produced 5.6Mt of coal.

Anglo American said in a statement: "The transaction remains subject to several conditions precedent, and its terms are confidential."

In December 2015, the company announced major restructuring plans and said it would divest three-fifths of its assets in a bid to tackle falling commodities prices.

During the same month, Anglo announced the sale of its 83.33% interest in the Dartbrook coal mine in the Hunter Valley to Australian Pacific Coal in a deal worth $36m.

The mine consists of an underground thermal coal mine and associated processing infrastructure that has been on care and maintenance since 2006.

The fall in commodity prices is forcing mining companies across the board to cut jobs, investment and costs, Reuters reported.