One of Australia's largest producing coal mines has attracted takeover interest from South Korea, with LG International Corp. (001120.SE) and a unit of Korea Electric Power Corp. (KEP), or Kepco, joining a consortium to consider a bid for Anglo American PLC's (AAL.LN) Callide mine, two people familiar with the matter said Wednesday.

LG and Komipo, the Kepco unit, have teamed up with Australian utility CS Energy to weigh a bid for the Callide coal mine in Queensland state, which produces around 10 million metric tons of thermal coal a year primarily for the domestic market, the persons said.

Anglo put the mine up for sale in November last year, saying it didn't align with its strategy of focusing on steelmaking coal rather than thermal coal burnt to generate power. It appointed UBS AG to handle the sale.

The valuation of the Callide mine isn't known, but analysts note transactions for Australian coal assets this year have completed at a multiple of 2.1 times measured and indicated resources. That implies an enterprise value for the Callide mine of A$1.62 billion based on its 808.2 million tons of coal.

"CS Energy confirms that the company is aware of the divestment by Anglo of its Callide Mine located near Biloela in Central Queensland," said company spokeswoman Jacinta Finger.

An official involved in Komipo's fuel division declined to comment.

Anglo spokeswoman Jacqui Strambi confirmed the sales process was ongoing, but declined to comment further. UBS declined to comment.

-By David Winning and David Fickling, Dow Jones Newswires; +61-2-82724688; david.winning@dowjones.com

-Min-Jeong Lee in Seoul contributed to this article.

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