Anglo American sells 70 per cent interest in Foxleigh coal mine in Queensland, Australia
Anglo American has agreed to sell a 70 per cent stake in a mine in Queensland, Australia, as it looks to raise money from asset sales.
The miner has agreed the sell of its interest in Foxleigh metallurgical coal mine to a consortium led by Taurus Fund Management, an Australian fund manager that specialises in investment products based on the mined commodities industry.
Foxleigh is an open cut coal operation which produces high quality pulverised coal injection (PCI) coal. Anglo American's share of production was 1.86m tonnes in 2015.
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Anglo American is planning to shed a total of between $5bn and $6bn worth of assets by the end of 2016. It jettisoned $2.1bn in 2015 and plans to raise a further $3bn to £4bn this year.
The rush to unload assets comes as China begins to shift its economy away from production and emerging market growth falters, causing a shortfall in demand.
In February Anglo American's credit rating was cut to junk by Moody's. Last year the miner made a pre-tax loss of $5.5bn.