Australian fund takes over Anglo American’s Foxleigh coal mine
Embattled miner Anglo American (LON:AAL) completed Monday the sale of its 70% stake in an open cut coal mine in Queensland, Australia to a joint venture led by fund manager Taurus Fund Management.
The disposal of the Foxleigh coal mine is part of Anglo’s recently announced massive and complete exit from coal.
While the sum was not disclosed, Anglo had said the new owners included Middlemount South Pty (a subsidiary of Taurus Funds Management), POSCO and Nippon Steel.
Anglo bought its majority stake in Foxleigh mine for $620 million in 2007 under former chief executive Cynthia Carroll.
According to Middlemount South chief operating officer, Scott Graham, the company plans to keep the mine in production, and meet all current sales contracts.
“This is an exciting time for Middlemount South as we get our feet under the desk and begin to fully investigate current operations,” Graham said in an e-mailed statement.
Anglo American bought its majority stake in Foxleigh for $620 million in 2007 under former chief executive Cynthia Carroll in a bid to grow its share of the coal market. The mine produces around 2.5 million tonnes of the steel-making commodity a year.
Mark Cutifani, Anglo’s chief executive, expects the company to generate between $3bn and $4bn from asset sales this year. In the six months to June 30 this year, the miner reported an $813 million loss, significantly less than the $3 billion it logged in the same period last year.