24th Dec 2015 10:08
LONDON (Alliance News) - Anglo American PLC said Thursday it has agreed to sell its 83.33% interest in the Dartbrook Coal Mine in Australia to Australian Pacific Coal Ltd for up to AUD50 million.
Under the deal Australian Pacific will pay up to USD50 million, comprising of an upfront cash payment of AUD25 million and the grant of royalty equal to AUD3.0 per tonne of coal produced by the operation in the future, as well as AUD0.25 per tonne of coal sources from other sites and processed using Dartbrook's processing infrastructure.
These royalty payments will be capped at AUD25 million.
The sale remains subject to some conditions, including the waiver of pre-emption rights by Anglo America's joint venture partner, Marubeni Coal Pty Ltd, and local and federal government consents. Anglo American said it expects to complete the deal by mid-2016.
Shares in Anglo American were up 0.5% at 324.95 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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