LONDON - Anglo American expects to receive binding offers for its steelmaking coal assets by mid-November as it advances a plan to restructure the business after battling a takeover offer from rival BHP Group, CEO Duncan Wanblad said.

The London-listed miner could finalise the sale of the Australian mines before the end of the year, Wanblad said at the FT mining summit in London. The process to sell the coking coal assets has passed the first round of auction, he added.

"So in the middle of November, we should be getting final binding offers," Wanblad said. "Then we will start negotiating a SPA (sales and purchase agreement). Now, with any luck we should be able to conclude that process just before the end of the year."

Anglo's mines for the steel-making ingredient include Grosvenor, where a fire ignited on June 29, and Moranbah North as well as three smaller mines all in Queensland state.

While the Grosvenor mine remains shut, the CEO said the latest assessment shows that the damage from the fire has been "limited and the ore bodies seem to be very much intact".

While the fire would affect the value potential buyers attach to the asset because of the cost of capital to restart operations, the loss to Anglo would be "reasonable", said Wanblad.

Analysts value Anglo's steelmaking coal business at around $4.5-billion.

The Grosvenor mine produced 2.8 million metric tons of metallurgical coal in 2023, making up 17% of Anglo's coal output, according to its annual report. The company is the world's third-largest exporter of metallurgical coal.

The CEO added that he would use proceeds from the sale of the coal assets to cut the company's debt.

Anglo is selling coal assets as well as nickel mines in Brazil to trim the business after fending off a takeover bid from bigger rival BHP earlier this year. The miner is also divesting its platinum business in South Africa and weighing whether to sell or demerge its diamonds business.

Between five and seven potential buyers including Glencore are expected to participate in the second-round auction for the coal assets, a source told Reuters. Glencore declined to comment.