Anglo American continues mine sell-off

MINING group Anglo American plans to divest its Callide coal mine in Australia to better focus on high-margin export operations.

Callide, located in central Queensland state, primarily supplies coal to domestic power stations.

The mine produced 8.8m tonnes of thermal coal in 2009 and has a resource base of more than 1bn tonnes.

“The strategy for Anglo American’s Metallurgical Coal business, based in Australia, is to focus on growing its metallurgical coal and high margin export thermal coal businesses,” the firm said in a statement.

Earlier this month,?Anglo American announced it was selling two steel businesses in the Americas to OneSteel of Australia for $932m (£600m), as part of its plan to focus on its core commodities businesses.

Analysts at Numis welcomed the sale, which they said would allow it to develop its thermal coal business.