Anglo American has announced the sale of its Foxleigh coal mine in Central Queensland.
The company announced on Monday that they had entered into a Sale and Purchase Agreement with a consortium led by Taurus Fund Management to sell its 70 per cent interest in the Foxleigh mine, near Middlemount.
The transaction will be effected via a sale of shares in the subsidiary companies holding Anglo American’s interest in Foxleigh. The transaction remains subject to several conditions precedent and its terms are confidential.
“While the transaction is finalised, safe-operation remains Anglo American’s number one priority,” a statement from the company said.
“As part of the transaction, Taurus is purchasing Anglo American’s shares in Anglo Coal Pty Ltd, the company that employs the majority of site-based employees. These employees will continue to be employed by Anglo Foxleigh during and upon completion of the transaction.”
In February, Anglo announced it will sell off it’s Queensland coal mines, including three Moranbah operations.
The company said the Moranbah North and Grosvenor Mines were up for sale, as well as the Moranbah South development project.
The sales are part of “wide-ranging measures that will sustainably improve cash flows and materially reduce net debt”.
“Anglo American will focus on competitive, long life assets with considerable organic growth opportunities that mine consumer-driven materials that are expected to benefit from long term growth trends as the global economy evolves and developing economies mature,” a statement from the company said.
In January, the company sold the Callide thermal coal mine.