Anglo mulls sale of Dawson, Foxleigh met coal mine stakes

Mining major Anglo American plans to sell its 51% stake in the Dawson mine and its 70% stake in the Foxleigh mine, both in Australia, it said on Friday February 13.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The decision to sell the ownership interests in the two open-cut metallurgical coal operations in Queensland’s Bowen Basin follows a review of Anglo American’s Australian coal portfolio.

Anglo American has previously announced plans to sell two of its thermal coal mines – Callide in Queensland and Dartbrook in New South Wales – as it seeks to streamline its coal business to help reduce net debt at the UK-listed mining group.

The divestments, which were not given a deadline, were expected to generate significant interest, according to Seamus French, ceo of Anglo’s coal business.

“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,” French said.

“While we are exploring a sale, we will be disciplined in our approach, and if offers we receive are below what we consider fair value, we will not sell these assets. These are good assets,” he added.

Anglo American continues to put focus on its operational Moranbah North coking coal mine in Queensland and the nearby Grosvenor coking coal project, which is on track to start longwall production in late 2016.

The company reported a loss in core earnings in its Australian and Canadian coal businesses for 2014 on lower average quarterly hard coking coal benchmark prices, it said on February 13.

Steel First’s daily hard coking coal index averaged $103.67 per tonne fob Queensland last year, compared with $126.16 per tonne fob in 2013.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed