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Embattled miner Anglo American (LON:AAL) has sold its 70% stake in an open cut coal mine in Queensland, Australia as it continues to shore up its balance sheet.
The sale of the Foxleigh coal mine is part of Anglo’s recently announced massive and complete exit from coal, which is included in of one of the sector’s biggest divestment schemes.
The sale is part of Anglo’s recently announced massive and complete exit from coal.
While the sum was not disclosed, Anglo said the buyer was a consortium led by Taurus Fund Management, an Australian fund manager that invests in the commodities industry.
Anglo American bought its majority stake in Foxleigh for $620 million in 2007 under former chief executive Cynthia Carroll in a bid to grow its share of the coal market. The mine produces around 2.5 million tonnes of the steel-making commodity a year.
In February, the diversified miner upped its target for the amount of money it wants to raise from disposals, to $5bn-$6bn by the end of 2016, as it seeks to weather the sharp slide in commodities prices. Around the same time, Moody’s cut the company’s credit rating to junk.
Mark Cutifani, Anglo’s chief executive, expects Anglo to generate between $3bn and $4bn from asset sales this year. In 2015, the miner made a pre-tax loss of $5.56bn.
