Anglo American PLC (AAL.LN) said Monday it has agreed to sell its stakes in five undeveloped coal assets in Australia for roughly $500 million to a consortium of companies including state-run Korea Electric Power Corp. (015760.SE).

The conditional agreement with Korea Electrical, or Kepco, Korean steel producer Posco (005490.SE) and Australia's Cockatoo Coal Ltd. (COK.AU) is for A$580 million in cash and covers the Bylong and Sutton Forest coal deposits in New South Wales and the Collingwood, Ownaview and Taroom open-cut deposits in Queensland. Anglo's stake in each is 51% and Mitsui & Co.'s (8031.TO) 49%.

The London-based company said it expects the deal to be completed in the fourth quarter, subject to regulatory and other approvals. Mitsui has preemptive rights over the Queensland assets, it said.

Kepco separately said it has agreed to buy full control of the Bylong assets for 403 million Australian dollars (US$338 million), which will double its coal self-sufficiency ratio to 24% and propels it into supplier status.

The company said it plans to start producing at Bylong in 2016, and eventually produce 7.5 million metric tons a year.

A Kepco official said that the company was among 70 bidders for the five assets Anglo American put up for sale.

Posco, Korea's largest steel producer by sales, said it and Cockatoo will jointly buy 100% of Anglo American's smaller Sutton Forest asset.

In a statement, it said it had agreed to pay A$50 million for a 70% stake in Sutton Forest, while Cockatoo will buy the remainder. It didn't specify the total value of the deal although Kepco said in its own statement the deal was worth A$72 million.

Greg Germon, head of investor relations at Cockatoo Coal, wasn't immediately available for comment.

State-owned Korean energy companies, including Kepco, invested a combined $4.5 billion last year in overseas resources companies and energy development projects, bringing total spending over the past 10 years to $9.48 billion as part of their efforts to secure stable supply of energy sources.

Kepco said Cockatoo had won a bid to buy a 51% stake in Ownaview and two other mines from Anglo American for a combined A$105 million, Kepco said.

Kepco said it will allow Cockatoo to run Bylong and also give the Australian company an option to buy 30% of the mine in three years. Kepco said it will in return take over the 51% stake in Ownaview from Cockatoo.

Anglo American said the five coal assets have an estimated attributable resource of 847 million tons.

Goldman Sachs JBWere advised Anglo American on the sales process.

-By In-Soo Nam and Robb M. Stewart, Dow Jones Newswires; 822-3700-1902; In-Soo.Nam@dowjones.com, robb.stewart@dowjones.com
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