Anglo American to divest five Australian coal mines to POSCO, KEPCO for A$580 mln
06 July 2010
Anglo American, one of the world's largest diversified mining companies, yesterday enterd into a deal to sell its interests in five undeveloped coal assets in Australia to a consortium led by Korea Electric Power Corp (KEPCO), steelmaker Posco and Australia's Cockatoo Coal Ltd. for A$580 million ($500 million) in cash.
The London-based Anglo American said that the consortium had bid successfully for Anglo American's Australian coal assets beating 70 other bidders including Chinese and Indian companies.
The assets comprise two wholly-owned underground coal deposits in New South Wales (Bylong and Sutton Forest) and Anglo American's share in three open cut coal deposits Collingwood, Ownaview and Taroom, all located in Queensland, where Anglo American holds a 51 per cent stake and Mitsui of Japan holds the remaining 49 per cent.
Anglo American said that the assets have total estimated coal reserves of 843 million tonnes.
Kepco has acquired the entire stake in the high quality Bylong bituminous coal mine for A$400 million ($340 million). The Bylong mine holds coal reserves of 420 million tons and a life of about 30 years.
Kepco said that it will produce 7.5 million metric tons of coal a year starting from 2016, which will double its independent production of coal from 12 to 24 per cent.