The sale is a part of the company’s major restructuring plan announced in December 2015.

As part of the restructuring plans, the company intends to divest three-fifths of its assets amidst slump in commodities prices.

The transaction, which is subject to several conditions, will be effected through a sale of shares in the subsidiary companies Anglo American’s interest in Callide.

The Callide project comprises an open pit thermal coal mine and associated processing infrastructure. The mine produced 7.6 Mt of coal in 2014.

Anglo American sold 4.7Mt of the coal produced to two adjacent power stations under long-term contracts.

The Callide mine supplies low sulphur, sub-bituminous thermal coal primarily for Queensland’s domestic power generation. It comprises the Southern area of Dunn Creek, Trap Gully, the Hut pits and the Boundary Hill pit.

Recently, Anglo American sold its interests in the Tarmac Middle East businesses to Colas, a part of Bouygues Group. Terms of the deal were not disclosed.

The firm also agreed to sell its majority interest in Dartbrook coal mine to Australian Pacific Coal for A$50m ($34m).