One sale and Callide likely
Anglo Americans exit from the coal sector materialising.
Tuesday 30 August 2016
After months of negotiations, Anglo American has finalised a deal to sell the Foxleigh mine and has “moved forward” in its negotiations to offload the Callide mine to Batchfire Resources.
On Monday Taurus Funds Management (TFS) officially announced it had successfully purchased Anglo American’s seventy percent stake in the Foxleigh mine, nearly five months after the two businesses reached a sale and purchase agreement.
Neither company is releasing details on the purchase price and conditions although the transaction was on a walk in - walk out basis.
In a written statement, TFS said it had established a new 100% owned subsidiary called Middlemount South Pty Ltd to take control of all equipment and day to day operations at the mine, while Asian steelmakers POSCO and Nippon will remain minority shareholders.
However, despite rumours that the new owners are planning to change mine operations - and possibly even suspend them - TFS have simply said they will honour all existing coal contracts, although they are not clarifying the time frames for those contracts.
Chief Operating Officer of Middlemount South, Scott Graham, said the mine would remain in production and will continue to contribute to the Queensland economy.
“This is an exciting time for Middlemount South as we get our feet under the desk and begin to fully investigate current operations,” he said.
“We are committed to ensuring a long-term future for the mine, and to those that will benefit from its high-quality coal.”
Foxleigh Mine produces high quality pulverised coal injection (PCI) coal used primarily in the production of steel.
Meanwhile, further south negotiations between Anglo American and Batchfire Resources are grinding ahead with a sale announcement possible within a fortnight.
A spokesperson for Batchfire told Shift Miner things were heading in the right direction.
“The sale negotiations are progressing, it is just taking longer than everyone anticipated,” he said.
“There are a number of conditions in the original agreement which all need to be confirmed.“Batchfire is confident that it can finalise the deal with its investors and Anglo American in the near future.”