Anglo considers options to sell coal assets after fire
BNN Bloomberg
Anglo American Plc is considering options to push ahead with a sale of its coal business after an explosion at its flagship Australian mine, including the possibility of selling individual assets or excluding the damaged operation from a potential deal.
The plan to exit coal formed part of a dramatic restructuring program announced earlier this year by Anglo, as the London-based miner was trying to fend off a takeover pursuit by larger rival BHP Group.
While it also intends to spin off its platinum unit and either sell or separate diamond miner De Beers, the company had been planning to tackle the coal sale first, seen internally and by investors as the most easily achievable part of the restructuring. Anglo has said it already received interest in the assets and a deal for the highly attractive coking coal mines in Australia would have demonstrated early progress to investors looking for signs that Anglo’s go-it-alone approach offers better value than the rejected bid from BHP.
The plan was thrown into question on Saturday when a methane explosion deep underground started a huge fire at Anglo’s Grosvenor coal mine in Queensland. It’s likely to be several months before the company is able to safely reenter the mine, let alone restart mining.
