Speculation is mounting that Swiss commodities trader Glencore is betting on a break-up play for the Anglo American coal portfolio, and that it may only be bidding for some of the assets within the $US3bn ($4.6bn) offering.
Should that be the case, it further cements Yancoal’s position as the leader in the race.
DataRoom understands that the China-controlled but Australian-listed Yancoal has already gained approval from the Chinese government to buy the assets and has 15 banks lined up and approved to provide funding.
Other suitors are a Stanmore Coal-led consortium, which could face challenges in getting all its bidding partners to agree on price, and Peabody Energy, seen as an outside chance.
Goldman Sachs and Morgan Stanley are working on the sale.
One of the assets Glencore is probably keen to side step is the Grosvenor Mine 1000km northwest of Brisbane that has been hit by closures due to a fire.
Bids are due next week.
Should the portfolio be split up, the major players could pick up Moranbah North and Grosvenor, Jellinbah could go to co-owners, while others take Capcoal and Dawson.
For 2023, Anglo American’s steelmaking coal operations generated 15 million tonnes of coal, equating to $1.3bn of earnings before interest, tax, depreciation and amortisation.
It is targeting production of about 20 million tonnes a year at a unit cost of $US100 a tonne by 2026.
Anglo American announced a company break-up while fending off BHP’s advances, leading to some of the best coal mines in the world – which sat within its portfolio – being put on the market.
Elsewhere, Bowen Coking Coal is understood to have secured the $70m it was searching for in an equity raising after doubts of it getting the cash had emerged in recent days.
It is understood existing shareholders and lenders have tipped in funds for the deal, to be announced on Friday.
Hurting Bowen has been its underperforming Bluff Mine in Queensland, as well as state coal mining royalties, which cost the group about $60m last year.
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