Anglo American entered into a conditional agreement with a consortium, composed of Korea Electric Power Corp., POSCO and CockatooCoal Ltd., to sell its interests in five undeveloped coal assets in Australia for A$580 million ($500 million) in cash.
The assets comprise two wholly-owned underground coal deposits in New South Wales (Bylong and Sutton Forest) and Anglo American’s share in three open cut coal deposits in Queensland (Collingwood, Ownaview and Taroom), all of which are held 51% by Anglo American and 49% by Mitsui. The assets have total estimated JORC compliant attributable resources of 843 million metric tons. The transaction is subject to customary regulatory approvals, Anglo American board approval, Cockatoo Coal obtaining necessary finances and Mitsui’s pre-emptive rights over the Queensland assets. The transaction is expected to be completed in the fourth quarter of 2010.