Anglo American To Expand Rather Than Sell Peace River Coal

-Globally diversified miner Anglo American PLC (AAL.LN) has decided to expand rather than sell its Canada-based Peace River Coal Ltd. venture, an Anglo American spokesman said Wednesday.

"We have decided to retain, invest in and grow our Peace River Coal asset in British Columbia, Canada," said James Wyatt-Tilby in an email. It is "in line with our strategy to grow our Metallurgical Coal business both within and beyond Australia," he added.

Peace River is a producer of metallurgical coal for export, and is 74.8% owned by Anglo, 12.2% owned by Toronto-listed Northern Energy & Mining Inc. (NNE.A.T) or NEMI, and 13% owned by Hillsborough Resources Ltd.

Peace River Coal owns several coal-bearing properties in the Peace River region of northeast British Columbia and is mining in the Tumbler Ridge area.

Anglo American had entered into agreements with its minority partners in April 20, 2010 to ease the sale process at a time when the company was still emerging from the global economic downturn of 2009.

Since then, mining companies around the world have benefited from a surge in metallurgical coal prices due to recovery in coking coal demand globally, particularly in emerging markets such as China, due to strained supplies.

-By Alex MacDonald, Dow Jones Newswires; [phone]; [e-mail]