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Anglo to lift coal 50% in seven years Posted: Wed, 20 Feb 2008 [miningmx.com] -- ANGLO American is targeting energy projects – in particular coal – as a key part of its global expansion pipeline in which projects costing $12bn are currently under development. An additional $29bn worth of projects are under consideration, it said. According to CEO, Cynthia Carroll, in her review of the group’s results for the year to end-December released today (Wednesday, 20 February), Anglo’s plans are to increase the group’s South African coal production by 50% to around the 90 million tonnes/year level by 2015. The recently approved $505m, 6.6 million tonne/year Zondagsfontein project will form an important part of this while, in Australia, the expansions at Lake Lindsay and Dawson will increase Anglo American’s coal production at these mines by about 9.7 million tonne/year. The approved expansion of the Cerrejon coal mine in Colombia to 32 million tonne/year remains on schedule for 2008 “with further expansion potential being examined.” She added the acquisition of a 70% interest in the Foxleigh coal mine in Australia - for $620 million late last year - further supported Anglo American`s coal ambitions. Carroll said that, further out still, Anglo American is studying several energy schemes in alliance with various international partners. “Prominent among these are the Monash project in Australia to convert brown coal to ultra-clean diesel and the Xiwan project in China that is examining the feasibility of converting coal to gas, fuels and chemicals,” she said. Carroll also said Anglo’s memorandum of understanding with the China Development Bank which was announced earlier this month: “... represents a long-term commitment to establish a strategic relationship to identify and develop a pipeline of natural resources projects in China, Africa and elsewhere.” Turning to the outlook for Anglo’s operations over the next year, Carroll said the global economic outlook for 2008 was “clouded by uncertainty” and that, “it is difficult to accurately forecast the medium term impact of power shortages on Anglo American’s businesses. "Anglo American is working with Eskom and the South African government to implement solutions.” Carroll said: “While it seems clear that US economic activity will be weaker in 2008 than in recent years, it is less clear how economic growth will be affected in the rest of the world, especially in those emerging markets whose growth has been largely responsible for the strong demand that has underpinned commodity prices." Click Here to subscribe to our daily newsletter
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