Global mining giant Anglo American plans to hive off thermal coal business by 2024 as part of a drive to deepen its green practice, the miner said on February 25.
The company plans to sell its 33.3% share in the Cerrejon thermal coal complex in Colombia within three years. Cerrejon, equally owned by Anglo American, BHP and Glencore, suffered a 3-month strike last year, resulting in its share output slumping by 52% to 4.1 million tonnes.
The push is slightly later than a previous plan that it will divest from Colombian asset by mid-2023.
BHP also plans to get away from Cerrejon in the years to come, but it could be difficult to find a buyer given the increasing pressure of environment protection.
Anglo American also said it would hive off its thermal coal assets in South Africa by no later than May 2023. Its South African mines produced 16.5 million tonnes of thermal coal for exports last year, down 7% year on year.
The company plans to produce 24 million tonnes of thermal coal this year, 16 million tonnes from its South African mines, and the rest from Colombia.
Rio Tinto entirely withdrew from thermal coal production in 2018. In recent years, more and more miners are moving away from business of the dirty fuel.
(Writing by Alex Guo Editing by Harry Huo)
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