Anglo Coal buys majority stake in Foxleigh

ANGLO American has acquired 70% of the Foxleigh coal mine joint venture for $US620 million, extending its coal holdings in Queensland's Bowen Basin.
Anglo Coal buys majority stake in Foxleigh Anglo Coal buys majority stake in Foxleigh Anglo Coal buys majority stake in Foxleigh Anglo Coal buys majority stake in Foxleigh Anglo Coal buys majority stake in Foxleigh

 

Angie Tomlinson

Foxleigh's current joint venture partners, Korean steel company POSCO and Japanese trading and mining investment company Itochu, will hold 20% and 10% interests respectively.

Original Foxleigh developers, John Thorsen, Trevor Bailey, Paul Darrouzet and the family of Gordon Smith have sold their stakes.

The Foxleigh opencut mine, located near Middlemount, currently produces 2.5 million tonnes per annum of PCI (pulverised coal injection) coal.

The operation has a production capacity of 3.3Mtpa, which it is expected to reach following completion of rail and port expansion projects.

The mine adjoins Anglo Coal's Capcoal (German Creek) operations and its Lake Lindsay mine development, offering potential synergies, Anglo said.

The company said the mine and surrounding tenements will be the subject of ongoing exploration and feasibility studies.

"The addition of Foxleigh is in line with Anglo American's strategic commitment to further grow our coal business in Australia in order to meet forecast increases in global demand for coal, particularly in the Asia-Pacific region," Anglo American CEO Cynthia Carroll said.

The transaction is subject to regulatory approvals.

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