Anglo American has made major moves to exit its Australian assets with the sale of a majority stake in the Foxleigh coal mine.
The miner has sold its 70 per cent stake in the metallurgical coal mine to Taurus Fund Management.
No valuation was given for the sale, with Anglo stating, “The transaction will be effected via a sale of shares in the subsidiary companies holding Anglo American’s interest in Foxleigh. The transaction remains subject to several conditions precedent and its terms are confidential.”
The sale is part of Anglo American’s wider strategy to divest assets, cut workers, and completely exit its Australian assets.
It announced its intention to sell off its Australian coal mines in February, CEO Mark Cutifani stating, We’ve deemed all the coal assets in Australia as non-core,” he said in a video released by the company, “and have processes across all of those assets.”
“Disposals processes are underway in the Moranbah and Grosvenor coal assets.”
The miner will also exit from its nickel, niobium, and phosphate operations globally, cutting jobs from 11,500 today to fewer than 5000.
Anglo American is also focused on exiting its Samcor Manganese joint venture operations it runs in South Africa with South32.
It comes despite an aggressive restructuring plan announced late last year which planned to slash its workforce by two thirds and divest non-core assets.
“The markets are challenging the industry,” Cutifani said, “and that is likely to continue,” explaining the impetus for the new decision.
“Demand growth of certain commodities has slowed, prices also fell steeply, particularly towards the end of last year…and they remain volatile,” he said.
“We are taking decisive action to sustainably improve our cash flows and materially reduce net debt, while focusing on our most competitive assets.”