Anglo American to Offload Queensland Coal Mine

By Joel ScanlonNov 23 2010

Anglo American has decided to sell the Callide thermal coal mine in central Queensland located south west of Gladstone. The decision comes as the mining company wants to maintain focus on its high margin export businesses. No value has been placed on the Callide mine by the company.

This would be the third such sale for Anglo American as it begins to focus sharply on its core commodities businesses. It had announced earlier this month that it was selling two of its steel businesses located in the Americas to OneSteel Ltd. The sales would fetch $932 million for Anglo American.

The Callide project produces about 10 million tonnes of thermal coal annually from four mines. The coal is all for domestic sale especially to the state owned CS Energy with whom it has a contract lasting until 2031.

Chief executive of Anglo American’s coking coal unit Seamus French said that the business unit was focused on increasing sales of coking coal which was used to make steel. This did not align it with the company’s growth strategy and so the divestment process would lead to its sale.

Anglo American has no immediate plans to sell Drayton Thermal Coalmine in New South Wale’s Hunter Valley region as most of its coal is sold in export markets.