Anglo American agrees to sell Callide coal mine

Anglo American has agreed to sell its 100% interest in the Callide thermal coal mine in Queensland, Australia, to Batchfire Resources for an undisclosed sum.

The company said the transaction, which is subject to several conditions, will be effected via a sale of shares in the subsidiary companies holding Anglo’s interest in Callide.

The Callide mine is an open-cut operation providing low sulphur and sub-bituminous thermal coal primarily for Queensland’s domestic power generation.

Back in December, Anglo said it would be suspending its dividend payment for 18 months as it announced a radical portfolio restructuring and further material costs savings and capex reductions to combat declining commodity prices.

At 0820 GMT, Anglo shares were down 5.9% to 224.85p.