Anglo American has announced that it has entered into a Share Sale Agreement with Batchfire Resources to sell its 100 per cent interest in the Callide thermal coal mine in Queensland.
The transaction will be effected via a sale of shares in the subsidiary companies holding Anglo American’s interest in Callide. The transaction remains subject to several conditions precedent, and its terms are confidential.
Callide consists of an open pit thermal coal mine and associated processing infrastructure that produced 7.6 Mt of coal in 2014 (and 5.6 Mt in the first nine months of 2015), the majority of which (4.7 Mt in 2014) was sold to two adjacent power stations under long term contracts.
The sale comes after the company sold Hunter Valley’s Dartbrook mine to Australian Pacific Coal Limited last year.
The Christmas Eve announcement stated Anglo entered into a Sale and Purchase Agreement with the AQC subsidiary as purchaser to sell its 83.33% interest in the Dartbrook coal mine.
Controversial Hunter businessman Nathan Tinkler was appointed chief executive of Australian Pacific Coal in November.
The agreement includes an upfront cash payment of $25 million, as well as coal royalties. The transaction is expected to be complete by this year, depending on government consent.