Anglo American sells stake in Queensland mine

Anglo American sells stake in Queensland mine

Anglo American (LSE:AAL) settled on selling a 70 per cent stake in a Queensland mine yesterday, seeking to raise money from asset sales.

The mining company has decided on the sale of its assets in Foxleigh metallurgical coal mine to a consortium headed by Taurus Fund Management, a fund manager specialising in mining commodity investment products in Australia.

The Foxleigh mine is an open cut coal venture which produces high quality pulverised coal injection (PCI) coal.

Anglo American is looking to cut a total of between US$5-6 billion worth of investments by the end of this year. It abandoned $2.1 billion in 2015 and seeks to increase an additional $3-4 billion this year.

Commodity giants are looking to unload assets quickly due to China’s economy turning away from production, which is causing a deficit in demand.

Anglo American’s credit rating was downgraded by Moodys in February and the miner made a pre-tax loss of $5.5 billion last year.