Anglo American reviews broader coal portfolio

OREANDA-NEWS. UK and South African listed mining firm Anglo American's broader coal portfolio is under review for possible sale, in addition to the two thermal coal export mines already offered in Australia.

Anglo American said last month its Callide and Dartbrook mines will be sold, part of plans to invest only in assets that can produce premium quality coal from a low position on the cost curve. The timing of its review of its coal portfolio is yet to be determined, the company said today.

Anglo American has six coal mines in Australia, including its 70pc owned Foxleigh venture in Queensland producing about 2.5mn t/yr of the pulverised coal injection grade. The company owns a third of the Cerrejon thermal coal mine in Colombia, around 10 mines in South Africa and a 24.2pc stake in the Richards Bay Coal Terminal.

The possible sale of more coal assets come as global coal prices have fallen sharply, putting many mines into a loss-making position. This is in contrast to Anglo American's stance in late 2011 when it said it was looking at investing up to \$15bn, mainly in its Australian coking coal mines.

Anglo American last month resubmitted a revised development proposal for the Drayton South thermal coal mine in Australia after the New South Wales state government made a final ruling against the firm's proposal to expand it to 8mn t/yr from 5mn t/yr.