Anglo American to sell Australian Callide coal mine

callide coal mine

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JOHANNESBURG (Reuters) – Global mining firm Anglo American will sell its Callide coal mine in Australia to Batchfire Resources, it said on Wednesday.

“The transaction will be effected via a sale of shares in the subsidiary companies holding Anglo American’s interest in Callide,” the company said in a statement.

Anglo said the terms of the deal were confidential.

The company announced a major restructuring in December, saying it would offload three-fifths of its assets as it attempts to tackle sliding commodities prices.

Callide, an open pit thermal coal mine that produced 5.6 million tonnes in the first nine months of 2015, is one of four Australian coal mines the company plans to sell.

Anglo announced last month it would sell its majority interest in Dartbrook coal mine to Australian Pacific Coal Ltd in a deal worth up to A$50 million ($34 million).

The company is scheduled to give more details on its future global portfolio in February.

The overhaul at Anglo American highlights the scale of the fallout from the commodities slide, which is forcing mining companies across the board to cut jobs, investment and costs.

($1 = 1.4571 Australian dollars)

 

(Reporting by Olivia Kumwenda-Mtambo; editing by Susan Thomas)

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