Indigo Division
Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY) is considering options to move forward with a sale of its coal business despite last weekend’s explosion at its flagship Grosvenor mine in Australia, including the possibility of selling individual assets or excluding the damaged operation from a potential deal, Bloomberg reported Tuesday.
While Anglo (OTCQX:AAUKF) (OTCQX:NGLOY) also intends to spin off its platinum unit and either sell or separate its De Beers diamond unit, the coal sale was seen as the most easily achievable part of the restructuring, but the plan was thrown into question when a methane explosion deep underground started a huge fire at the Grosvenor coal mine; it likely will be several months before the company is able to safely re-enter the mine, let alone restart mining.
The company is reluctant to abandon the sales process despite the setback, given the strong early interest it received in the mines, according to the report, which added that its options now could include selling the rest of the coal business without Grosvenor or selling the other mines individually.
Anglo (OTCQX:AAUKF) (OTCQX:NGLOY) is under pressure to execute on its restructuring plan that includes selling the assets, and the company reportedly is keen to move ahead and show it is making progress after its board rejected BHP’s takeover approach in May.