Anglo American to divest stakes in two Australian coal operations

15 February 2015 (Last Updated February 15th, 2015 18:30)

Anglo American has announced plans to sell its ownership interests in two open cut coal operations in Queensland's Bowen Basin in Australia.

Shaft tower

Anglo American has announced plans to sell its ownership interests in two open cut coal operations in Queensland's Bowen Basin in Australia.

Following the conclusion of a review of its Australian coal portfolio, the company intends to sell its 51% stake in Dawson mine near Moura and 70% stake in Foxleigh mine near Middlemount.

The two operations, which are claimed to be highly productive, do not align with the company's core business portfolio in the country and its broader global coal business, the company said

Anglo previously announced the sale of Callide mine in Queensland and Dartbrook mine in New South Wales.

With these divestments, the company expects its total sale portfolio to be 12.2 million tonnes (Mt) of export production and 8.4Mt of domestic production a year, and a combined resource base of more than two billion tonnes.

Anglo American coal business CEO Seamus French said the announcement is expected to generate significant interest from potential buyers.

"The four assets…represent an impressive resource base of high-quality export coal [and] a long history of benchmark operational performance."

"The four assets included in the sale package represent an impressive resource base of high-quality export coal, a long history of benchmark operational performance and good infrastructure access.

"Anglo American is now seeking interest from other experienced operators that may be better placed to invest in these operations and take advantage of further growth opportunities."

The company is in the process of streamlining its coal portfolio to focus capital on its priority assets in a bid to bolster its business and plans to use the proceeds to redeploy into strategic focus areas for the business.

Anglo American's $1.95bn Grosvenor project in Moranbah is said to be on-track to longwall production and is expected to commence in late 2016.


Image: Anglo American's Dawson and Foxleigh mines are highly productive. Photo: Victor Habbick/ FreeDigitalPhotos.net.