Anglo American to Sell Dartbrook Coal mine to Australian Pacific Coal
24 December 2015 - 10:13PM
Dow Jones News
By Razak Musah Baba
LONDON--Anglo American PLC (AAL.LN) has agreed to sell Dartbrook
coal mine to Australian Pacific Coal Ltd. (AQC.AU), for up to 50
million Australian dollars ($35.8 million), as part of the mining
firm's restructuring plan to focus on its core assets.
Anglo American said it has entered into a sale and purchase
agreement and royalty deed with Australian Pacific as guarantor and
a subsidiary of Australian Pacific as purchaser to sell its 83.33%
interest in Dartbrook in the Hunter Valley, New South Wales,
Australia.
Under the terms, Australian Pacific will buy Anglo American's
interest in Dartbrook for up to A$50 million, comprising an upfront
cash payment of A$25 million and the grant of a royalty equal to
A$3.0 for each ton of coal produced by the operation in the future
and A$0.25 for each ton of coal sourced from other sites and
processed using Dartbrook's processing infrastructure.
Royalty payments will be subject to escalation with reference to
the Brisbane All Groups Consumer Price Index and capped at A$25
million, it said.
The transaction will be effected via a sale of shares in the
subsidiary companies holding Anglo American's interest in
Dartbrook. The transaction is expected to complete by mid-2016.
Earlier this month, Anglo American announced a radical
restructuring of its business that includes more asset sales,
larger cost cuts and a suspension of dividend payments in a bid to
weather a severe slump in commodity prices.
U.K.-based Anglo, the world's fifth-largest mining company by
market value, said it plans to reduce its portfolio of assets by
60% to focus on a smaller pool of assets that are able to generate
cash flow through the commodity price cycle.
Shares at 1020 GMT up 3 pence, or 0.8%, at 326 pence, valuing
the company at GBP4.57 billion.
Alex MacDonald contributed to this article
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
December 24, 2015 05:58 ET (10:58 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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