“So in the midst of November, we needs to be getting remaining binding presents,” Wanblad mentioned. “Then we’ll begin negotiating a SPA (gross sales and buy settlement). Now, hopefully we must always be capable of conclude that course of simply earlier than the tip of the 12 months.”
Anglo’s mines for the steel-making ingredient embody Grosvenor, the place a hearth ignited on June 29, and Moranbah North in addition to three smaller mines all in Queensland state.
Whereas the Grosvenor mine stays shut, the CEO mentioned the newest evaluation reveals that the injury from the fireplace has been “restricted and the ore our bodies appear to be very a lot intact”.
Whereas the fireplace would have an effect on the worth potential patrons connect to the asset due to the price of capital to restart operations, the loss to Anglo can be “affordable”, mentioned Wanblad.
Analysts worth Anglo’s steelmaking coal enterprise at round $4.5 billion.
The Grosvenor mine produced 2.8 million metric tons of metallurgical coal in 2023, making up 17% of Anglo’s coal output, based on its annual report. The corporate is the world’s third-largest exporter of metallurgical coal.
The CEO added that he would use proceeds from the sale of the coal belongings to chop the corporate’s debt.
Anglo is promoting coal belongings in addition to nickel mines in Brazil to trim the enterprise after heading off a takeover bid from greater rival BHP earlier this 12 months. The miner can also be divesting its platinum enterprise in South Africa and weighing whether or not to promote or demerge its diamonds enterprise.
Between 5 and 7 potential patrons together with Glencore are anticipated to take part within the second-round public sale for the coal belongings, a supply instructed Reuters. Glencore declined to remark.
(By Felix Njini and Clara Denina; Enhancing by Kirsten Donovan)