Anglo American is to buy a majority stake in the Revuboe metallurgical coal project in Mozambique for A$540m (£357m) from Australia's Talbot Group, boosting its presence in a key region for the steelmaking commodity.
Anglo said on Tuesday it would buy a 58.9 per cent stake from the group founded by the late mining tycoon Ken Talbot. Other partners in the project are Nippon Steel, with just over 33 per cent and Korean steelmaker POSCO, with 7.8 per cent.
The undeveloped deposit has a reported resource of 1.4bn tonnes of hard coking and thermal coal suitable for open cut mining, with the potential to export 6-9m tonnes per year.
"The acquisition of a majority interest in Revuboe is in line with our commitment to grow our global metallurgical coal business to supply our customers from each of the key metallurgical coal supply regions of Australia, Canada and Mozambique," chief executive Cynthia Carroll said.
Anglo has turned its focus from major deals to smaller, bolt-on acquisitions in key commodities. Last week the miner announced it had increased its stake in its Kumba Iron Ore subsidiary to just under 70 per cent.
City A.M. Reporter