Anglo American plc has announced that it has entered into a conditional agreement with a consortium, composed of Korea Electric Power Corporation, POSCO and Cockatoo Coal Limited, to sell its interests in five undeveloped coal assets in Australia for A$580 million (approximately US$500 million) in cash.
The assets comprise two wholly-owned underground coal deposits in New South Wales (Bylong and Sutton Forest) and Anglo American’s share in three open cut coal deposits in Queensland (Collingwood, Ownaview and Taroom), all of which are held 51% by Anglo American and 49% by Mitsui. The assets have total estimated JORC compliant attributable resources of 843 million t.
The transaction is subject to customary regulatory approvals, Anglo American board approval, Cockatoo Coal Limited obtaining necessary finances and Mitsui’s pre-emptive rights over the Queensland assets. The transaction is expected to be completed in the fourth quarter of 2010.