Anglo American Plc., the metals producer with mines from Chile to Zimbabwe, said it will cancel the A$540 million ($562 million) acquisition of a stake in the Revuboe coal project in Mozambique.
“The transaction was subject to a number of conditions,” the London-based company said in a statement. “Those conditions have not been satisfied. Anglo American expects to continue with its objective of establishing a position in the emerging metallurgical coal basin in Mozambique.”
The company on July 24 announced the purchase of a 58.9 percent stake in the Revuboe project from the estate of Ken Talbot, an Australian mining entrepreneur who was killed in a plane crash in June 2010. His private company, Talbot Group, has investments in mineral projects including Revuboe. Japan’s Nippon Steel Corp. had 33.3 percent, and South Korea’s Posco owned 7.8 percent, Anglo said in in the July 24 statement.
Mozambique, which began commercial coal production in 2010, boosted output to about 5 million metric tons last year from 600,000 tons in 2011, according to the International Monetary Fund. Revuboe is in the Moatize coal basin in the southern African nation’s northwestern Tete province, where the local unit of Vale SA, the world’s largest iron-ore producer, and Rio Tinto Plc have operations.