Anglo American, a major player in the global mining industry, has set a date to begin receiving bids for its Australian metallurgical coal mines. This sale is part of a broader restructuring plan initiated after a failed takeover attempt by its larger competitor, BHP. According to sources familiar with the matter, the bidding process will begin on September 9, as the company looks to divest some of its key assets in Queensland.
The mines on the auction block include the Grosvenor and Moranbah North operations, as well as three smaller coal mines in the region. These assets were once estimated to be worth up to $5 billion before a significant incident at Grosvenor earlier this year. In June, an explosion and subsequent fire at the Grosvenor mine raised concerns about the mine’s safety and future viability, putting pressure on the sale process. Despite this setback, Anglo American is pressing ahead with its plans, having enlisted the help of three top banks in July to manage the sale.
The decision to sell these assets comes after Anglo American faced significant challenges in recent months. The failed takeover attempt by BHP, a mining giant with a global footprint, prompted Anglo to reassess its strategy. As part of this strategic shift, the company is now focusing on divesting non-core assets to streamline its operations and strengthen its balance sheet. The sale of the Australian coal mines is a key component of this restructuring plan, aimed at optimizing the company’s portfolio and improving its financial health.
Potential bidders for these assets include several major players in the mining industry. Glencore, a Swiss-based mining and commodities trading firm, is seen as a leading contender. Glencore has a substantial presence in the Australian coal market and recently decided against spinning off its coal unit, following pushback from shareholders. Instead, the company is now looking to expand its coal operations, with a particular interest in acquiring steelmaking coal assets that are strategically located and reasonably priced.
Another group expected to enter the bidding process is led by Indonesian companies, with Golden Energy and Resources at the forefront. This group has expressed interest in expanding its coal portfolio in Australia. Delta Dunia Group, another Indonesian firm listed on the Jakarta Stock Exchange, also announced plans in July to grow its business through acquisitions. Delta Dunia operates the BUMA coal mining services business in Australia and sees the Anglo American assets as a potential opportunity to enhance its market position.
Yancoal, a China-backed mining company, is another strong candidate to bid for Anglo American’s coal assets. Yancoal has been actively seeking metallurgical coal deals in Australia and has approximately A$1.5 billion ($1 billion) in available funds to support its expansion plans. Securing these assets would significantly boost Yancoal’s production capacity, positioning it as one of the top coal producers in Australia. This would allow Yancoal to capitalize on the rising demand for metallurgical coal across Asia, particularly in China and India, where steel production is driving increased consumption of this vital resource.
