Anglo to sell 12% of Australian coal mine to Japanese partners (updated)
27/11/2019 08:22
* Japanese firms say shoring up strategic supplies
* Anglo says move will add efficiency
LONDON, Nov 27 (Reuters) - Mining group Anglo American
AAL.L is selling a 12% stake in its coking coal operations at
Grosvenor in Queensland, Australia, to a group of Japanese
partners for around $141 million in cash, it said on Wednesday.
The partners are Japan's biggest steelmaker Nippon Steel
Corporation 5401.T , Mitsui & Co 8031.T , Nippon Steel Trading
Corporation, Shinsho Corporation 8075.T and JFE Mineral Co.
Pressure is mounting on miners to divest coal assets because
of their carbon emissions.
Coking coal, unlike thermal coal which is used in power
generation, is considered to have a vital role in steel-making.
Some countries list it as a strategic mineral, although
manufacturers are developing technology using lower-carbon
alternatives to try to reduce emissions from the steel sector.
Anglo American said the move was designed to replicate the
ownership model at another of its Queensland coking coal mines
Moranbah North, where Anglo's Japanese partners also have a 12%
stake.
The two mines share processing infrastructure and Anglo said
the move could remove bottlenecks and improve productivity.
Seamus French, Anglo American's chief executive of bulk
commodities, said that aligning ownership interests would
improve flexibility to blend products and improve
competitiveness of what he said was "a world-class asset".
Mitsui in a statement said the deal was in line with its
goal to obtain a "secure sustainable supply of essential
products".
Nippon Steel Corporation also said it would continue efforts
to secure "medium- and long-term stability in raw materials
procurement", while strengthening ties with the producers of
iron- and steel-making raw materials.
(Reporting by Barbara Lewis in London, Yuka Obayashi in Tokyo
and Yadarisa Shabong in Bengaluru; Editing by Jan Harvey)
((Barbara.hm.Lewis@thomsonreuters.com; +44 207 542 2932;
Reuters Messaging:
barbara.hm.lewis.thomsonreuters.com@reuters.net))