Anglo American PLC Monday said it has agreed to sell its 70%...

Anglo American PLC Monday said it has agreed to sell its 70% interest in the Foxleigh metallurgical coal mine in Queensland, Australia, to a consortium led by Taurus Fund Management for an undisclosed sum.


This is a modestly positive note for COK true believers and Baralaba.

Foxleigh sits exactly in the same space as Baralaba, Low VM PCI coal used in the steel sector as a cost saving measure.

Glass half empty part - if Foxleigh continues to operate at existing or even expanded capacity, Baralaba still faces a relatively tough market to expand in to. Also, Foxleigh may be able to achieve significant cost savings without the Anglo corporate overhead and bureaucratic processes.


Glass half full part - Taurus are a private equity mob. They are there to make money. Like Liberty. Typical private equity game plan is take an asset, clean it up and list/relist it. Hopefully without the subsequent disaster that is Dick Smith ( DSE ) .

If private investment is starting to stick it's toe back in to the coal space, maybe they view the sector as having hit bottom with some potential bounce, given the lack of investment from the majors.

This might be a small but positive development.