Warburg Shuts Mining Company Anemka That Bought No Assets

  • Anemka was formed in 2015 to acquire and operate mining assets
  • Warburg-backed firm had bid for Anglo coal assets in Australia

Warburg Pincus has shut down a company formed two years ago with a top industry executive to buy and operate mining assets, according to people familiar with the matter.

Anemka Resources ceased operations after failing to acquire any assets, the people said, asking not to be identified as the information is private. Peter Kukielski, the former ArcelorMittal executive who was in charge of running Anemka, will leave the firm as part of the move, the people said.

Warburg, a New York-based private-equity firm, had offered a line of equity to Anemka to back potential deals, one person said. The equity facility was never drawn for acquisitions and used only to meet some of Anemka’s general expenditures, the person said. Warburg had hired Kukielski in 2014 as an executive-in-residence to focus on mining investments.

Private-equity transactions in mining are likely to make a comeback this year as several groups shift from fundraising to dealmaking, according to U.K. law firm Berwin Leighton Paisner. There were 36 of the deals in 2016, valued at $1.75 billion, compared with $3.2 billion from 119 transactions a year earlier.

Anemka was one of the bidders for Anglo American Plc’s Australian metallurgical coal assets last year, people familiar with the matter said in November. Anglo decided to scrap the sale process after coal prices surged.