Anglo American has entered an agreement with Malabar Coal to sell its 88.17 per cent interest in the Drayton thermal coal mine and Drayton South project in New South Wales.
Anglo American ceased mining activities at the Drayton mine in the Hunter Valley last year after it failed to get approvals for the project.
The company had put forward an extension plans for Drayton South to extend the operations, however these were consistently knocked back.
The latest rejection was the fourth within the past six years, and was based on the risks the project would pose to the environment.
Anglo American CEO Mark Cutifani said, “The agreement to sell the Drayton thermal coal mine marks further progress as we focus our global portfolio around our largest and most competitive assets,” he said.
The transaction will be conducted through sale of shares in the subsidiary companies holding the Anglo American’s interest in Drayton, with its terms remaining confidential.