Thermal coal prices recently touched a five-and-a-half year low of US$62.25 per tonne and the market has seen several mining companies announce plans to sell coal assets or take on partners to weather the downturn.
At an investor briefing in London on Dec. 11, Anglo American (NASDAQ: AAUK; LSE: AAL) said it will pare its coal portfolio leaving only high margin assets and reiterated that its Callide and Dartbrook coal properties in Australia are already available for sale.
Anglo said it will complete a review of its assets in the first half of 2015 and expects the sales process will start in the second half of next year.
A few days earlier, Vale (NYSE: VALE) unveiled a deal with Mitsui & Co. in which the Japanese commodities trading company will invest US$450 million for a 15% stake in the Brazilian’s Moatize coal mine in Mozambique and spend another US$188 million to help pay for its expansion. The Moatize mine in northwestern Mozambique has been producing coal since July 2011.
In addition, Mitsui agreed to invest …
Read the complete article at NorthernMiner.com/news/lower-coal-prices