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.

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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.