Anglo American to sell Peace River Coal Limited

20 Apr 2010

Anglo American, one of the world's largest diversified mining companies, today said that it had entered into agreements with its minority partners in Peace River Coal Limited to facilitate the sale of the company.

The Peace River Coal venture owns several high-quality metallurgical coal bearing properties in the Peace River region of northeast British Columbia and also conducts mining operations in the Tumbler Ridge area.

Anglo American holds a 74.83-per cent stake in Peace River Coal Limited, while 12.99 per cent is held by Hillsborough Resources Ltd and 12.18 per cent by NEMI Northern Energy and Mining Inc.

After the failed takeover attempt by Swiss miner Xstrata last year, Anglo American, led by chief executive Cynthia Carroll had announced in October 2009 a major restructuring of the company that would see it sell its non-core assets worth $7 billion in order to focus on its core mining portfolio and streamline the group's management structure. (See: Anglo American to sell non-core assets worth $7 billion)

The London-based Anglo American is in advanced talks to sell its zinc business, which had a output of 340,500 tonnes last year, for more than $1 billion. (See: Anglo American in talks to sell zinc business worth $1 billion) 

In February 2010, Anglo sold its Tarmac's construction businesses in France, Germany, Poland and the Czech Republic to Eurovia, a subsidiary of the Vinci Group for $400-million. (See: Anglo American to sell Tarmac Europe for $400 million)