Global diversified miner Anglo American announced Wednesday it has acquired the remaining 25%, along with rights to royalties it didn't already own, in BC-based Peace River Coal Partnership (PRC), for a combined $166 million.
PRC is a coking coal producer with properties in the northeast Peace River region of British Columbia, Canada. The company is a limited partnership between Anglo American (LON:AAL), NEMI Northern Energy and Mining Inc. (TSE:NNE.A) and Hillsborough Resources Ltd.
Under Wednesday's transaction, Ango American will spend US$76 million for a 12.18% interest in PRC held by Northern Energy & Mining Inc.; and $81 million for a 12.99% interest held by Hillsborough Resources Ltd., plus $9 million to acquire Hillsborough’s royalty rights relating to PRC.
"Peace River Coal is a large and high quality coking coal resource of approximately 1 billion tonnes, on an attributable basis, supported by well developed power, rail and port infrastructure," said Seamus French, CEO of Anglo American’s Metallurgical Coal business.
"We see significant resource upside and plan to invest in further exploration studies to ascertain its full long term potential. In the near term, we will be progressing a feasibility study to increase production from 1 Mtpa to 3.5 Mtpa by 2015."