Anglo American acquires full ownership of Peace River Coal, Canada
Anglo American announces that it has acquired 100% ownership of Peace River Coal Limited Partnership ("PRC"), which comprises the Trend metallurgical coal mine and various exploration leases in British Columbia, Canada, through the acquisition of the 25.17% interest in PRC that it did not already own.
Anglo American has completed the acquisition of the 12.18% interest in PRC held by Northern Energy & Mining Inc. for a cash consideration of US$76 million and has completed the acquisition of the 12.99% interest held by Hillsborough Resources Ltd. for $81 million plus $9 million to acquire Hillsborough's royalty rights relating to PRC.
Seamus French, CEO of Anglo American's Metallurgical Coal business, said: "Peace River Coal is a large and high quality coking coal resource of approximately 1 billion tonnes, on an attributable basis, supported by well developed power, rail and port infrastructure. We see significant resource upside and plan to invest in further exploration studies to ascertain its full long term potential. In the near term, we will be progressing a feasibility study to increase production from 1 Mtpa to 3.5 Mtpa by 2015."
Anglo American plc is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Anglo American's portfolio of mining businesses spans precious metals and minerals - in which it is a global leader in both platinum and diamonds; base metals - copper and nickel; and bulk commodities - iron ore, metallurgical coal and thermal coal. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company's mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia. www.angloamerican.com
Posted: October 5, 2011