Anglo: Dawson mine to be sold
ANGLO American's 51% stake in Dawson mine operations is to be sold, in a announcement made on Friday.
The decision came after the company concluded a review of its Australian coal portfolio yesterday but Anglo ensures stakeholders, in the mean time, it's "business as usual".
Dawson mine will join Callide mine, both on the market, bringing the total sale portfolio to an annual 12.2 million tonnes of export production, 8.4 million tonnes of domestic production and a combined resource base of over two billion tonnes.
Foxleigh mine, near Middlemount and Dartbrook mine in New South Wales are also for sale.
Anglo American's Coal CEO Seamus French said the mines included in the sale portfolio were "highly attractive" and he expected strong interest from potential buyers.
"The four assets included in the sale package represent an impressive resource base of high quality coal export, a long history of benchmark operational performance and good infrastructure access," Mr French said.
He said all four operations were highly productive, well-run operations with significant coal inventories however Anglo American believes their full potential may be realised under different ownership.
"Anglo American is now seeking interest from other experienced operators that may be better placed to invest in these operations and take advantage of further growth opportunities," Mr French said.
"We are streamlining our coal portfolio to focus capital on our priority assets to strengthen our business and these assets no longer align with our core business portfolio in Australia and our broader global coal business."
Mr Frech said the proceeds from the sale of the mines would be redeployed into strategic focus areas for the business and would contribute to achieving the Anglo American's group long term net debt target.
"While we are exploring a sale we will be disciplined in an approach and if offers we receive are below what we consider fair value we will not sell these assets, these are good assets," he said.
"In the meantime, it will be business as usual for the operations.
"We will work through the sales process with the upmost respect for our workforce and will work with them to maintain our safety and productivity focus for the foreseeable future.
"Beyond the divestment program, Anglo American is focused on sustaining and maintaining our current priority assets and our long-term growth portfolio in Australia.
"We expect the divestment process to take some time and we will ensure we keep all relevant stakeholders informed as it progresses."
Employees of Dawson mine were told about the sale yesterday.