UPDATE: Anglo American Plans Sale Of 5 Australian Coal Projects
February 28 2010 - 10:19PM
Dow Jones News
Anglo American PLC (AAL.LN) said Monday it is launching a sales
process for five undeveloped coal exploration projects in
Queensland and New South Wales states.
The potential sales continue a recent trend for major coal
producers in Australia to sell off smaller scale projects,
capitalizing on the buoyant outlook for coal prices and strong
demand for tightly-held local coal assets.
Anglo American said it was selling the assets, which are
predominantly export grade thermal coal, because they do not form
part of its growth plans in the short to medium term.
A spokeswoman for the company said its existing Australian coal
mining operations are not affected by its decision to sell
exploration projects.
"Anglo American remains committed to its operations in
Queensland's Bowen Basin and the Hunter Valley in New South Wales,"
she said.
The miner has already had approaches from potential buyers from
Australia and overseas interested in the coal projects, which have
a total resource of 1.14 billion metric tons, a person familiar
with the deal said.
The assets up for sale are the Collingwood, Ownaview and Taroom
projects in Queensland's Surat Basin and the Bylong and Sutton
Forest projects in the Sydney Basin in New South Wales.
The Queensland assets are 51% owned by Anglo with Mitsui &
Co. Ltd. (8031.TO) holding the remaining 49%, and it is not clear
whether the Japanese group has a preemptive right to buy Anglo's
stake or if it would be interested in doing so.
Mitsui was not immediately available to comment.
In a flyer for the sale, Anglo said the coal resources had the
potential to support future thermal coal export operations of more
than 20 million metric tons a year, with first coal possible from
2015.
Goldman Sachs JBWere is advising Anglo American on the sales
process.
-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094;
alex.wilson@dowjones.com
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