Anglo American acquires majority interest in Foxleigh coal mine
Anglo American plc is pleased to announce the acquisition of a 70% interest in the Foxleigh coal mine joint venture in Queensland, Australia. This investment of US$620 million (1) adds to Anglo American’s already substantial and growing coal mining operations in the Bowen Basin, one of the world’s premier coal regions.
Foxleigh’s current joint venture partners, the Korean steel company POSCO and the Japanese trading and mining investment company Itochu, will hold 20% and 10% interests respectively.
Foxleigh currently produces 2.5 million tonnes per annum of PCI (pulverised coal injection) coal for the steelmaking industry. Foxleigh has production capacity of 3.3 million tonnes per annum, which it is expected to reach following completion of rail and port expansion projects. The Foxleigh mine adjoins Anglo Coal’s Capcoal (German Creek) operations and the associated Lake Lindsay mine development, offering potential synergies. The mine and surrounding tenements will be the subject of ongoing exploration and feasibility studies.
Cynthia Carroll, CEO of Anglo American, said: “The addition of Foxleigh is in line with Anglo American’s strategic commitment to further grow our coal business in Australia in order to meet forecast increases in global demand for coal, particularly in the Asia-Pacific region. Foxleigh’s operations and undeveloped assets are located in one of the world’s largest and best developed coal provinces, with which we are very familiar. I believe Foxleigh represents a valuable strategic and complementary addition to our portfolio of coal assets in Australia.”
The transaction is subject to regulatory approvals.
(1)Enterprise Value for 70% of the interest in the Foxleigh mine, at an exchange rate of US$0.86: A$1.00 = A$721 million. Adjustments will be made at completion date for debt, coal stocks and typical balance sheet liabilities.
For further information:
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Notes to Editors:
Anglo American plc is one of the world’s largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, as well as an industrial minerals business and a stake in AngloGold Ashanti. The Group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk)
Anglo Coal is a wholly owned division of Anglo American plc, with significant coal interests in South Africa, Australia, Canada and Venezuela. In 2006, Anglo Coal’s global production was 95 million tonnes, of which Australia contributed 25 million tonnes (attributable tonnes). Anglo Coal Australia is one of Australia’s leading coal producers with extensive coal mining interests and prospects in Queensland, New South Wales and Victoria. (www.anglocoal.com.au)
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