Bloomberg News

Anglo May Invest $15 Billion in Australian Coal, CEO Says

November 02, 2011

(Updates with CEO’s comment in second paragraph.)

Oct. 27 (Bloomberg) -- Anglo American Plc, part owner of the world’s biggest platinum and diamond producers, may invest as much as $15 billion to expand its steelmaking coal business in Queensland.

“We’re looking at the potential of investing between $10 billion and $15 billion and creating over 3,200 jobs,” Cynthia Carroll, chief executive officer of the London-based company told reporters today in Perth. “We’ll be making a decision by probably the first quarter of next year.”

The potential investment, over the next eight years, would see growth at existing coal mines and projects, Carroll said.

Supply and demand fundamentals for mining projects are “outstanding” Carroll said last month, adding she’s positive for the industry even if China’s economic growth slows to 7 or 8 percent a year. China’s economy cooled to 9.1 percent in the third quarter, from 9.5 percent in the previous quarter.

China has raised interest rates three times in 2011 and ordered lenders to set aside a bigger portion of their deposits to curb inflation that’s near a three-year high.

Anglo said in February it may spend $85 billion to boost output of copper, nickel and coal at 100 projects over the decade, forecasting that Asian demand for the raw materials will continue to push up prices.

--Editors: Andrew Hobbs, Baldave Singh

To contact the reporters on this story: Jason Scott in Perth at jscott14@bloomberg.net; Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net

To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net


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