Mining giant Anglo American (LSE:AAL) wants to take full control of the Peace River Coal partnership (PRC), marking the third time in less than a year that a major coal company has invested in B.C.’s booming mineral sector.
On Thursday, NEMI Northern Energy and Mining (TSX:NNE.A) announced an agreement with Anglo Coal Canada to sell its 12.18% interest in the Peace River partnership for $73 million.
“The board and management are of the opinion that the purchase price represents fair and adequate consideration for the company’s interest in PRC,” NEMI said in a statement.
NEMI also revealed that Anglo has struck a sale agreement with the partnership’s third member, Hillsborough Resources, to buy its 12.99% stake in Peace River Coal.
PRC’s operations include the Trend mine, and other nearby projects including Belcourt-Saxon, Roman Mountain and Horizon. The deal comes three months after Anglo halted a proposed sale of PRC, a process that had begun in the spring of 2010.
Anglo’s decision to consolidate its stake in Peace River comes as other major mining houses take a renewed interest in B.C.’s coal sector.
Last month, Xstrata Coal, a subsidiary of the Swiss-based diversified miner Xstrata plc (LSE:XTA), announced a $147 million deal to buy Vancouver’s First Coal Corp., which has been developing two steel-making coal properties in Northeast B.C.
Earlier this year, U.S.-based Walter Energy (NYSE:WLT) bought Western Coal Corp. for $3.3 billion, acquiring three mines near Tumbler Ridge.
At press time, NEMI’s stock was up 30% to $1.
Joel McKay
Twitter:jmckaybiv