Anglo American (LON:AAL) has announced the equalisation of ownership across its integrated metallurgical coal operations at Moranbah North and Grosvenor, in Queensland, Australia.
The long-established Moranbah North mine and processing operation is 88% owned by Anglo American, with 12% owned by a consortium of Japanese companies1. The more recently commissioned and neighbouring Grosvenor mine was developed, and is wholly owned, by Anglo American and came onstream in 2016. The Grosvenor mine uses Moranbah North’s coal processing infrastructure, where numerous debottlenecking, expansion and product blending options offer considerable cost, productivity and margin benefits for the integrated operation.
Anglo American has therefore sought to replicate the ownership structure of Moranbah North at Grosvenor, through the agreed sale of a 12% interest in the Grosvenor mine to the same consortium partners, in order to align the interests of all of the owners and to facilitate the delivery of the value creation opportunities set out above. Under the terms of the agreement, which is subject to a number of conditions prior to completion, Anglo American will receive cash proceeds of approximately US$141 million in respect of the 12% minority interest in the Grosvenor mine.
Seamus French, CEO of Bulk Commodities at Anglo American, said: “The alignment of ownership interests across the Moranbah-Grosvenor operation is an important step forward as we unlock the considerable additional value that we see. Our ability to expand the plant, debottleneck various processes, and have the flexibility to blend our naturally high quality products more effectively, all support the long term competitiveness of what is already a world-class asset. I am pleased to be building on the successful relationships with our joint venture partners in delivering Moranbah-Grosvenor’s full potential for the benefit of all our stakeholders.”
Notes
1 Nippon Steel Corporation, Mitsui & Co., Ltd, Nippon Steel Trading Corporation, Shinsho Corporation, JFE Mineral Co., Ltd
