Anglo sells Aussie coal assets for $500m

[] — Resources giant Anglo American on Monday announced that it has agreed to sell its interests in five underdeveloped coal assets in Australia for about $500m.

Anglo American said it has entered into a conditional agreement with a consortium, composed of Korea Electric Power Corporation, POSCO and Cockatoo Coal, which plan to acquire the assets.

The assets comprise two wholly-owned underground coal deposits in New South
Wales (Bylong and Sutton Forest) and Anglo American’s share in three open cut coal
deposits in Queensland (Collingwood, Ownaview and Taroom), all of which are held
51% by Anglo American and 49% by Mitsui.

These assets have total estimated JORC compliant attributable resources of 847
million tonnes.

The transaction is expected to be completed in the fourth quarter of 2010.

At 16:13 shares in Anglo American were 1.63% or R4.40 lower at R266.10 on the JSE.