London-based Anglo American (AAL-L) is selling its stakes in five undeveloped coal assets in Australia to a consortium made up of state-run Korea Electric Power Corp., Korean steel producer POSCO, and Australia’s Cockatoo Coal (COK-A), for US$500 million in cash.
The assets consist of two wholly-owned underground coal deposits in New South Wales (Bylong and Sutton Forest) and Anglo American’s share in three open-pit coal deposits in Queensland (Collingwood, Ownaview and Taroom). Anglo American holds 51% of the three open-pit deposits and Japan’s Mitsui holds the remainder.
The assets have total JORC-compliant attributable resources of 843 million tonnes.
The deal is expected to be completed in the fourth quarter.
In separate news, Anglo American’s chief executive, Cynthia Carroll, came under fire for her appointment as chairperson of subsidiary Anglo Platinum, with some analysts calling the move everything from a breach of corporate governance to a blow for minority rights.
Anglo American owns 80% of Anglo Platinum’s shares, which are listed on the Johannesburg Stock Exchange.
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