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Initial bids for Anglo's Australian coal mines due by Sept 9, sources say

Published 2024-08-20, 02:57 a/m
© Reuters. Logo of Anglo American is seen on a jacket of an employee of the Los Bronces copper mine, in the outskirts of Santiago, Chile March 14, 2019. REUTERS/Rodrigo Garrido/File Photo
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By Melanie Burton

MELBOURNE (Reuters) -First-round bids for Anglo American (JO:AGLJ)'s Australian metallurgical coal mines are due by Sept. 9, two sources said on Tuesday, as CEO Duncan Wanblad takes initial steps to simplify the company after rejecting a takeover offer from BHP.

Anglo's mines for the steel-making ingredient include Grosvenor and Moranbah North as well as three smaller mines all in Queensland state, a package that broker Jefferies valued at $4.5 billion before a fire at Grosvenor in June. The mine remains shut and is unlikely to reopen before 2026, analysts say.

Wanblad is embarking on a strategy to shore up the miner with a focus centred on copper after rebuffing BHP's $49 billion takeover offer earlier in the year.

Anglo, which declined to comment, said last month it expected to reach a deal for the coal assets by early 2025.

Its restructuring plan also includes divesting its De Beers diamond assets and its nickel mines, as well as the demerger of its South African platinum unit. Standard Chartered (LON:STAN) has been appointed to run the nickel sale, according to one of the sources, who was not authorised to speak publicly about the matter. Standard Chartered did not immediately reply to an emailed request for comment.

POTENTIAL BUYERS

Glencore (LON:GLEN), already a major supplier of Australian coal, is expected to make a bid for the assets, given its favourable view on the commodity and its strong balance sheet, according to analysts.

The London-listed miner opted this month to keep its coal business, having considered spinning it off, as it completed its buyout of Teck Resources (TSX:TECKa)' Canadian coking coal assets. A Glencore spokesperson declined to comment.

Indonesian buyers are also expected to make an appearance.

A consortium including Golden Energy and Resources (GEAR), backed by Indonesia's Widjaja family and Australian privately owned company M Resources is considering making a bid, a source familiar with the matter told Reuters.

Indonesia's Delta Dunia Group, which runs its Buma coal mining services business in Australia, said last month it planned to grow through acquisitions.

© Reuters. Logo of Anglo American is seen on a jacket of an employee of the Los Bronces copper mine, in the outskirts of Santiago, Chile March 14, 2019. REUTERS/Rodrigo Garrido/File Photo

Delta Dunia Group Director Iwan Fuad Salim told Reuters this month the company would continue to "look at opportunities when they arise as part of our growth strategy," but declined to elaborate further.

Yancoal, which operates several coal mines in Australia, "continues to look for high quality acquisition opportunities," it said in an earnings report on Monday. A spokesperson did not immediately return an emailed request for comment.

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