Australia Markets close in 2 hrs 15 mins

Anglo American buys stake in Mozambique coal project

An Anglo American copper mine on the outskirts of Santiago, Chile. Global miner Anglo American has agreed to buy a majority stake in a Mozambique coal project for around $555 million.

Global miner Anglo American on Tuesday said it had agreed to buy a majority stake in a Mozambique coal project for around US$555 million (459 million euros).

London-listed Anglo American said in a statement that it would acquire a 58.9-percent interest in the Revuboe metallurgical coal project in Mozambique from investment group Talbot for Aus$540 million in cash.

"The acquisition of a majority interest in Revuboe is in line with our strategic 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," Anglo American chief executive Cynthia Carroll said.

"Revuboe is located in the most attractive area of Mozambique's Moatize coal basin and has a number of infrastructure development options. We look forward to working with the government of Mozambique and our joint venture partners to progress this exciting prospect," she added in the statement.

Anglo American said it hoped to complete the deal by the end of September.

The Revuboe project is a joint venture, with Japan's Nippon Steel Corporation owning 33.3 percent and South Korean steelmaker POSCO 7.8 percent.