Following the rejection of BHP’s takeover bid, Anglo-American is expecting first-round bids for its Australian metallurgical coal mines by 9 September
According to Reuters, two unnamed sources said that Anglo will receive bids for its Grosvenor and Moranbah North mines, and three other smaller coal mines in Queensland. Before a fire at Grosvenor in June, the collection of mines was valued at $4.5bn by the investment bank Jeffries. The mine has been shut since the fire. In 2023, 4.67 million tonnes of coal was extracted from the Grosvenor mine, according to GlobalData, Mining Technology’s parent company.
Anglo CEO Duncan Wanblad has been looking at ways to rationalise the company since the board rebuffed $49bn BHP offer bid earlier in the year. The board declined it citing the deal’s complex structure and execution risks.
According to analysts, bidders for Anglo’s mines in September could include Glencore, which already has a large presence in the Australian gold market, several Indonesian companies and Yancoal.
After deciding not to sell its coal business, Glencore has been expanding its presence in the market, with the acquisition of the Canadian mining company Teck Resources in July.
Sources told Reuters that a consortium including Golden Energy and Resources, which is backed by the Australian privately owned company M Resources and Indonesia’s Widjaja family is considering making a bid.
Indonesia’s Delta Dunia Group could also be in line to make a bid, as it said last month that it plans to grow through acquisitions, and it already has a presence in the Australian coal mining business through its Buma coal mining services.
Yancoal also said on Monday that it was looking to expand its metallurgical coal business in Australia and has A$1.5bn ($1bn) of available funds at its disposal.
Anglo’s plan also includes divesting its De Beers diamond assets and its nickel mines, along with the demerger of its South African platinum unit.
