Prices for coking coal have been soft this year because of a...

Prices for coking coal have been soft this year because of a global glut of steel and a slump in Chinese construction. However miners and steelmakers expect a shortage of high-quality metallurgical coal in the longer term, leading to a rush for assets.

The talks over the Anglo sale coincide with a state election in Queensland with the Labor party, which introduced a sharp rise in the royalties that mining companies have to pay, behind in the polls. The opposition Liberal National Party has not indicated it will lower the royalties however, a move that could boost the value of the miner’s assets.