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Mariah and Jay csg Under 13 Red Team Award winners (L-R) Bronte and Fallon Greg Byrne, Downing; Ian Reed, QNP Under 13 Yellow Team Under 17's Girls Award Winners kaleb and Gino Club Persons of the Year were Roydon Brown, Shane Pingel, Merry and Allan Pidgeon The Gavin Daly Memorial Shield was won by Bailey Keabel and Jack Pidgeon seen here with Sonia Daly mine Aboutusgenericimage_3 Construction csg Port
Mariah and Jay csg Under 13 Red Team Award winners (L-R) Bronte and Fallon Greg Byrne, Downing; Ian Reed, QNP Under 13 Yellow Team Under 17's Girls Award Winners kaleb and Gino Club Persons of the Year were Roydon Brown, Shane Pingel, Merry and Allan Pidgeon The Gavin Daly Memorial Shield was won by Bailey Keabel and Jack Pidgeon seen here with Sonia Daly mine Aboutusgenericimage_3 Construction

Dawson and Foxleigh on the market
ANGLO American trying to reduce its CQ footprint.
Wednesday 18 February 2015  

AS foreshadowed last month, Anglo American has added Foxleigh and Dawson to the list of its coal mines up for sale in Queensland.

In December last year the company announced that its Callide mine near Biloela and its Dartbrook mine in New South Wales were both on the market, and that they were reviewing their current coal portfolio in Queensland.

However this week they announced that following the review they had decided to add Foxleigh and Dawson to the list of assets up for sale.

Anglo American’s coal chief Seamus French said the mines were high-quality assets expected to generate significant interest.

“The four assets included in the sale package represent an impressive resource base of high-quality export coal, a long history of benchmark operational performance and good infrastructure access,” Mr French said.

While Anglo American says the sale makes strategic sense for them, they are ruling out a fire sale, and will only move forward if they can get a reasonable price for the mines.

Last week Anglo reported a $3.2 billion loss, and said the assets they were planning to sell were not making an adequate contribution to the performance of the company.

Portfolio Manager at Bizzell Capital Partners Peter Wright predicted increased asset sales in Central Queensland a fortnight ago.

“When you are selling in US dollars and receipting in Australian dollars it has a marked effect on net present values or, in other words, Australian assets become inherently cheaper, and it is usually a catalyst for takeover activity,” he told Shift Miner.

“At the last bottom of the market after the GFC, Chinalco launched a bid for Rio Tinto and from that you saw a series of bids for assets.

“If you are an investor and you are now seeing assets in Australia that are 25 per cent cheaper and revenue is 25 per cent better, with a rapidly deflating cost environment, it starts to look attractive.”

Anglo has flagged a reduction in capital spending this year by as much as $1 billion, while at the same time improving productivity on existing operations by 80 per cent.

Mr Cutifani famously said last year that he expects a mine somewhere in the world to shut down every two to three weeks until supply is more in line with demand.


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