Anglo American announces sale of Callide coal mine to Batchfire Resources

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Image credit: twitter.com/AngloAmerican

Mining giant Anglo American has agreed the sale of its 100% interest in the Callide thermal coal mine in Queensland, Australia, to the unlisted private Australian company, Batchfire Resources for an undisclosed fee.

Image credit: twitter.com/AngloAmerican

The Callide mine in Central Queensland is an open-cut operation providing low sulphur, sub-bituminous thermal coal primarily for Queensland’s domestic power generation.

It consists of the Southern area of Dunn Creek, Trap Gully and The Hut pits, with the fourth pit – Boundary Hill – located 20 kilometres to the north-east.

The mine – which uses both dragline and truck and shovel methods of overburden removal – produced 7.6 Mt of coal in 2014 (and 5.6 Mt in the first nine months of 2015), the majority of which (4.7 Mt in 2014) was sold to two adjacent power stations under long term contracts.

Anglo American said the transaction – subject to several conditions precedent – will be effected via a sale of shares in the subsidiary companies holding Anglo American’s interest in Callide.