Anglo American agrees to sell coal assets in Australia

UK-based diversified miner Anglo American plc (Anglo American) 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 AU$580 million (approximately US$500 million) in cash.
 
According to an Anglo American statement, the assets comprise two wholly-owned underground coal deposits in New South Wales, namely Bylong and Sutton Forest, and Anglo American's share in three open cut coal deposits in Queensland, namely Collingwood, Ownaview and Taroom, all of which are held 51 percent by Anglo American and 49 percent by Mitsui. The assets have total estimated resources of 843 million mt.
 
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.