Anglo American’s coal mine sale down to two bidders

It is believed the sales process for Anglo American’s Grosvenor and Moranbah North coal mines is now down to the last bidders, BMA and AMCI.

The coal mines have been on the market since February this year, after Anglo American announced its intention to divest all of its Australian operating assets.

BMA has long been posited as a buyer, along with fellow miner Glencore, whilst a number of consortiums have formed to purchase the mines, such as private equity firm Apollo Global Management, which is working with US coal company Xcoal Energy and Resources, whilst other private equity firms like ACMI are believed to be tendering for the operation, and even Chris Cline a US billionaire with a long history in coal, has been spotted touring Anglo American’s Moranbah North coal mine.

Now the field has been narrowed down to BMA and ACMI, according to The Australian.

It comes just a month after Grosvenor produced first coal ahead of schedule.

The mine, which was first approved for development at the end of 2011, delivered first coking coal from its longwall seven months ahead of schedule, and more than US$100 million below budget, according to Anglo American.

It now aims to ramp up to 3.2 million tonnes for 2016, with eventual plans to become a 7.5 million tonnes per annum operation.

According to Anglo it will have an all in sustaining unit cost of $110 per tonne (US$84 per tonne), a price point just below current Australian government estimates of an average US$91 per tonne for coking coal.