Anglo American is selling a 12 per cent stake in the Grosvenor coking coal mine to a consortium of Japanese companies for about $208 million ($US141 million).
The group includes Nippon Steel Corp, Mitsui, Nippon Steel Trading Corp, Shinsho Corp and JFE Mineral Co.
Anglo announced the move as ‘the equalisation of ownership’ across its metallurgical coal operations at Moranbah North and Grosvenor, near Moranbah.
The Moranbah North mine and processing operation is 88 per cent owned by Anglo American and 12 per cent owned by the Japanese consortium.
The neighbouring Grosvenor mine, which came online in 2016, was wholly owned by Anglo American before the deal, but uses Moranbah North’s coal processing infrastructure.
Deal paves way for ‘value creation’ options
Anglo American says replicating the ownership structure of Moranbah North at Grosvenor will align the interests of all of the owners and facilitate the delivery of the value creation opportunities such as debottlenecking, expansion and product blending options.
“The alignment of ownership interests across the Moranbah-Grosvenor operation is an important step forward as we unlock the considerable additional value that we see,” chief executive officer of bulk commodities Seamus French said.
“Our ability to expand the plant, debottleneck various processes, and have the flexibility to blend our naturally high quality products more effectively, all support the long-term competitiveness of what is already a world-class asset.
“I am pleased to be building on the successful relationships with our joint venture partners in delivering Moranbah-Grosvenor’s full potential for the benefit of all our stakeholders.”