Anglo American seeks buyers for Callide thermal coal mine in Australia
13 May 2011
Anglo American, one of the world's largest diversified mining companies, is preparing to sell its Callide thermal coal mine in Australia as part its earlier plan to cut costs and focus on its core mining portfolio.
The London-based mining company has appointed Swiss bank UBS to advise on the sale.
The Callide coal mine located near Biloela in Central Queensland produces coal primarily for domestic power generation in Biloela and Gladstone.
Callide, located near Biloela in Central Queensland is an open-cut mining operation providing low sulphur, sub-bituminous thermal coal primarily for domestic power generation in Biloela and Gladstone.
Callide mine is believed to hold reserves of an estimated 225 million tonnes, valued at A$300 million.
Callide consists of four major pits. The mine produced 8.8 million tonnes of thermal coal in 2009 and has expansion potential from its resource base of more than 1 billion tonnes.
Anglo American had said in November 2010 that it wanted to sell Callide thermal coal mine in order to focus on expanding their metallurgical coal business.