Anglo American Agrees $36 Million Sale of Australian Coal Mineby
Anglo is seeking to cut the number of mines it owns in half
London-based miner will continue to earn royalties from mine
Anglo American Plc agreed to sell its Dartbrook coal mine in Australia for about $36 million as the company sheds assets as part of a drastic downsizing.
The producer will sell its 83 percent stake in the project to Australian Pacific Coal Ltd., the London-based company said in a statement on Thursday. Anglo will also receive a royalty payment for every ton of coal mined or processed at the site.
Anglo American, the worst-performing company in the benchmark FTSE 100 index this year, announced plans this month to cut by more than half the number of mines it owns and eventually lower employee numbers to 50,000, from 135,000. The producer is seeking to transform the business to help weather a collapse in commodity prices.
It will focus on copper, diamond and platinum assets, while Chief Executive Officer Mark Cutifani has said that bulk commodities such as iron ore and coal are suffering from chronic oversupply and would remain challenging markets.