Photo by: Bloomberg
PERTH (miningweekly.com) – Diversified miner Anglo American has struck a sales agreement with unlisted Malabar Coal to divest of its 88.17% interest in the Drayton thermal coal project and the much aligned Drayton South project, in New South Wales.
“The agreement to sell the Drayton thermal coal mine marks further progress as we focus our global portfolio around our largest and most competitive assets,” Anglo CEO Mark Cutifani said on Thursday.
Anglo in 2016 announced plans to divest of its coal interests in Australia, after narrowing its focus to diamonds, platinum and copper.
The Drayton transaction, details of which are confidential, will be effected through a share sale in Anglo’s subsidiary companies that hold the Drayton interest. The transaction remains subject to several conditions precedent.
Anglo American ceased mining operations at Drayton in 2016, after plans for the Drayton South coal project have been repeatedly rejected by the New South Wales Planning and Assessment Commission over fears that it will impact on nearby horse stud farms.
Anglo previously adjusted the mine plan for the Drayton South operation, including reducing the tonnage from a projected 189-million tonnes to only 75-million tonnes and cutting some A$7-billion in coal revenue. The mine plan also reduced the life of the operation from 27 to 15 years.