AAL Anglo American Plc

   By Robb M. Stewart 
 

MELBOURNE, Australia--Bid target Energy Developments Ltd. (ENE.AU) could build a power station fueled by waste coal-mine gas at Anglo American PLC's (AAL.LN) 1.7 billion Australian dollar (US$1.2 billion) Grosvenor mine being developed in eastern Australia.

The Australian energy company said Friday it has signed a gas-supply deal with the mining company for the possible construction of a 21-megawatt power station at the Grosvenor site in Queensland state's coal-rich Bowen Basin.

The new underground metallurgical coal mine is under development and has an expected mine life of more than 30 years. A power station at the site would be the third Energy Developments facility fueled by waste coal-gas at an Anglo American mine.

Energy Developments earlier this month said it had agreed to be acquired by Duet Group Ltd. (DUE.AU) in a deal that valued it at almost A$1.93 billion. Several analysts expect the deal will go ahead, since Energy Developments investors together holding almost 86% of its shares have agreed to accept the offer.

Write to Robb M. Stewart at robb.stewart@wsj.com

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