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Anglo American takes up to US$4 billion hit on coal assets

World Coal,

Anglo American are to writedown the value of its iron ore and Australian coal assets of up to US$4 billion, the company said in its latest quarterly production report.

“The first six months of the 2015 have seen significant further weakness and ongoing volatility in the prices of bulk commodities,” the mining major said. “As a result, Anglo American expects to record non-cash impairments within special items […] relating to Minas-Rio and certain Australian coal assets of approximately US3 – 4 billion on a post-tax basis.

The company recorded export metallurgical coal output of 5.3 million t, up 9% y/y, due to higher production at Moranbah following a longwall move in 2Q14 and first development coal shipments from Grosvenor. This more than offset reductions in production after Peace River Coal in Canada was placed into care and maintenance.

Export thermal coal production was up 38% in Australia and flat in South Africa as 1.3 million t and 4.3 million t respectively, while production in Colombia was also slightly higher at 2.9 million t.

Production destined for Eskom dropped by 17% to 6.8 million t.

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