SYDNEY – Bidders for Anglo American’s Australian metallurgical coal assets, including Coronado Coal and AMCI Capital, are in talks with banks for acquisition financing, people with knowledge of the matter said.
Coronado and AMCI are competing for Anglo American’s Moranbah and Grosvenor mines with BHP Billiton, which bid through its coal joint venture with Mitsubishi, the people said, asking not to be identified as the information is private.
The assets in Queensland state may fetch as much as $1.5-billion, according to the people.
Anglo American has delayed the decision on a winning bidder until next month, after the London-based company’s earnings on July 28, while the remaining bidders conduct extended due diligence on the mines, the people said. A group led by Glencore have dropped out of the race, according to the people.
CEO Mark Cutifani wants to raise $3-billion to $4-billion from asset sales to reduce Anglo American’s debt and refocus the company as a miner of diamonds, platinum and copper. The company announced in April the $1.5-billion divestment of its Brazilian niobium and phosphate unit to China Molybdenum, after agreeing to sell interests in Australian coal mines including Foxleigh, Callide and Dartbrook.
PRIVATE EQUITY BACKING
Anemka Resources, the mining investor backed by Warburg Pincus, and a pairing of Apollo Global Management and Xcoal Energy & Resources also bid for the metallurgical coal assets, according to the people. No final decisions have been made, and talks could still fall apart, the people said.
Spokesmen for Anglo American, Apollo, BHP and Glencore declined to comment. Representatives for AMCI, Anemka Resources and Coronado didn’t immediately return phone calls seeking comment.
Coronado Coal, backed by Houston-based private investment firm Energy & Minerals Group, in January completed the purchase of West Virginia coal assets from Cliffs Natural Resources for $174-million in cash and the assumption of certain liabilities.
AMCI, founded by Hans Mende and Fritz Kundrun as a coal and metals trading company, owns assets including a coal mine near the Australian port Newcastle and a stake in the West Pilbara iron ore project in Western Australia state, according to its website.
Anglo American owns 88% of the Moranbah North mine, located in Queensland’s Bowen basin and has annual output of four-million metric tons of coking coal, according to the company’s website. The nearby Grosvenor project delivered its first coal seven months ahead of schedule, the company said in May