Anglo swallows PRC

ANGLO American has acquired full ownership of Peace River Coal for $A164 million after purchasing the 25% stake it didn’t already own.
Anglo swallows PRC Anglo swallows PRC Anglo swallows PRC Anglo swallows PRC Anglo swallows PRC

Image courtesy of Peace River Coal.

Lauren Barrett

The deal comes after it bought 12.18% of Northern Energy and Mining for $72 million.

Anglo said it had also finalised the purchase of the 13% interest held by Hillsborough Resources for $80 million plus $9 million for royalty rights.

Back in May, Anglo planned to sell its stake in PRC but changed its mind after announcing it wanted to expand its metallurgical coal business in Canada’s British Colombia.

Anglo will now have full ownership of PRC’s coking coal resources, which amount to 1 billion tonnes and include the Trend, Belcourt-Saxon and Roman Mountain complexes.

Anglo’s chief executive officer Seamus French said the company would invest in further exploration studies to ascertain long-term potential of the assets.

“In the near term, we will be progressing a feasibility study to increase production from 1 million tonnes per annum to 3.5Mtpa by 2015,” he said.

PRC produced 868,000 tonnes of metallurgical coal in 2010.

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