Anglo intends to sell its stake in Australian coal mines to Japanese miners

On November 27, Anglo American, a miner, said it planned to sell 12 per cent of its coking coal business in Grosvenor, Queensland, Australia, to five Japanese miners for about $141 million. The five Japanese miners are Nippon Steel Co., Mitsui & Co, Nippon Steel trading, shinsho CO and JFE mineral Co. In recent years, due to the problem of carbon emission, the pressure of coal enterprises to divest coal assets is also increasing. Different from power coal used in power generation, coking coal plays an important role in steel-making process. Although iron and steel manufacturers are developing low-carbon alternative technologies to reduce emissions from the steel industry, coking coal is still listed as one of the strategic minerals in some countries. British American said the sale was designed to emulate the company's business model at another Moranbah North coking coal mine in Queensland, which is also owned by a 12 per cent stake by its Japanese partner. The two coal mines share the same coal processing facilities, which Anglo said would eliminate production bottlenecks and improve production efficiency. Seamus French, chief executive of Anglo American commodities, said that the adjustment of ownership of Grosvenor coal mine will improve the flexibility of asset management products and enhance the competitiveness of this "world-class asset". In a statement, Mitsui said the deal was in line with the company's "safe and sustainable supply of basic products.". Sumitomo Nippon Steel also said that the company will continue to make efforts to ensure "medium and long-term stability of raw material procurement" and strengthen contact with raw material manufacturers.