Iron ore price weakens as Australia flags return to sub-$100 prices
Futures dropped for a fourth day in Singapore, to trade about 3% lower for the week.
The final bidders for Anglo American’s Australian coal assets are down to Yancoal Australia, Stanmore Resources and Peabody Energy Corp, three sources with knowledge of the matter told Reuters.
The final bid submissions are due on Wednesday, said one of the sources, who asked to remain unidentified.
Yancoal, Peabody and Anglo American declined to comment on the bidding process. Stanmore did not immediately reply to a request for comment.
Anglo is acting on a plan to restructure its business by selling and divesting unwanted assets after fighting off a $49 billion takeover bid from larger rival BHP Group in May.
That has kicked off with the sale of its portfolio of five steelmaking coal assets in Australia – Moranbah North, Grosvenor, Capcoal, Dawson and Jellinbah.
Anglo last week agreed to sell a 33.3% stake in a joint venture that owns a 70% interest in the Jellinbah East and Lake Vermont steelmaking coal mines for A$1.6 billion ($1.04 billion).
The sales would end Anglo’s active mining operations in Australia but it will continue exploration activities in the country.
The sales process is expected to conclude by the end of the month, when a freeze on BHP making an approach for Anglo set down by the UK takeovers legislation expires.
Analysts at Jefferies estimated the value of the five assets at $4.5 billion before a fire at its Grosvenor mine earlier this year.
($1 = 1.5342 Australian dollars)
(By Melanie Burton and Scott Murdoch; Editing by Christian Schmollinger)
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