Anglo American mulls sale of more coal mines in Australia

Anglo American mulls sale of more coal mines in Australia

We are going to sell one, two … most of our under-performing assets.

Anglo American (LON:AAL) is considering the sale of more coal assets in eastern Australia in an effort to boost returns under weak commodity prices, FT.com reported (subs. required), citing inside sources.

The miner, one of the world's largest coal producers, may add the Dawson and Foxleigh operations in Queensland to the list of coal mines up for sale in Australia. In December, Anglo announced it was looking for buyers for the Callide and Dartbrook projects, as part of a massive transformation that will see it shed 35 % of its global workforce.

Anglo’s chief executive, Mark Cutifani, began a major review of operations from Australia to Brazil after joining the firm in April 2013. He has already announced that is seeking to sell stakes in or exit its South African platinum mines, as well as three copper mines and a smelter in Chile.

The possible sale of further coal assets in Australia come as global coal prices have fallen sharply, putting many mines into a loss-making position.

The news weighed on the company's shares, causing Anglo to shed over 3.7% Friday. The drop was also driven by subsidiaries Anglo American Platinum (Amplats) and Kumba Iron Ore warning that they expected full-year earnings to shrink more than previously flagged.

Anglo American set to sell Australian coal mines to boost returns