London’s Financial Times claimed that Anglo’s Dawson and Foxleigh mines in Queensland were being primed for a possible sale, with Bank of America Merrill Lynch involved in the process.
In December Anglo did reveal plans to sell the power station-feeding Callide open cut coal mine in Queensland and the closed Dartbrook underground coal mine in the Hunter Valley of New South Wales – taking the sales pool to four mines if FT is correct.
Notably, the initial press report claimed that five of Anglo’s Australian coal mines were poised for sale but the newspaper’s website since struck the large Drayton mine in the Hunter Valley off that list following a correction from a “further source”.
Anglo and Bank of America MS both declined to comment to the newspaper.
At an investor presentation in December, Anglo CEO Mark Cutifani revealed divestment plans were underway to help reduce Anglo’s debt which was expected to peak at between $US13.4-14 billion ($16.7-17.5 billion) in 2015.
“We have identified, through our review process, a number of assets that are likely to deliver greater value under different ownership, enabling us to concentrate our resources on our most attractive priority assets,” he said.
“A number of sales processes are under way; however, our value hurdles will need to be met prior to divestment.”
RBC Capital Markets has reportedly estimated that the Callide thermal coal mine could be sold for up to $1 billion while the Dartbrook longwall mine, which went under care and maintenance in September 2006, was valued at $200 million.
Cutifani talked up the closed Dartbrook mine just a few days before Christmas. He said that buyers were lining up for the asset which had nearly one billion tonne of resources.
"It's got all the established infrastructure, the washing plant, the rail loop, the whole thing [is] in place already,” he told the ABC.
"We see it actually being developed an as open cut, so it closed down as an underground mine but the study we were running was actually to look at an open cut.
"So, I think you'll find, a lot of parties will be interested in its potential as an open cut and with the already established infrastructure it makes it a pretty good asset."
An Anglo spokeswoman confirmed to ICN that Drayton was not up for sale but declined to comment on the Dawson and Foxleigh operations.
“Our broader portfolio is currently under review and the outcome of that review is still to be determined,” she told ICN on Friday afternoon.
While Anglo is yet to release its December quarter and calendar year 2014 production results, the Dawson coking, soft coking and thermal coal mine produced 1.04 million tonnes in the October quarter while the Callide thermal coal mine produced 2.32Mt.
