Anglo American is considering selling some of its Australian coal assets to boost profitability amist falling commodity prices.
The company is said to be adding two mines to the list of coal projects for sale in Australia, according to Bloomberg.
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Anglo American is preparing to divest five mines in Queensland and New South Wales as part of the $3bn to $4bn asset sale programme, according to FT.
Last month, the company announced the sale of its Callide and Dartbrook mines in a plan to only invest in assets that can produce quality coal from a low position on the cost curve.
Anglo American is yet to determine the timing for the coal portfolio review. The company has six coal mines in Australia, including its 70-owned Foxleigh venture in Queensland that produces around 2.5 million tonnes a year of pulverised injection-grade coal.
In Colombia, the company is said to own a third of the Cerrejon thermal coal mine, as well as around ten mines in South Africa and a 24.2% stake in the Richards Bay Coal Terminal.
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By GlobalDataAnglo’s latest decision regarding the potential coal asset sale follows the decline in global coal prices that has put many mines into a loss-making position.
Last month, Anglo American resubmitted a revised development proposal for the Drayton South thermal coal mine in Australia.
