LONDON, April 14 (Reuters) - Mining streaming company Anglo
Pacific could be open to selling its thermal coal
royalties to accelerate its transition away from the most
polluting fossil fuel, chief executive Julian Treger said on
The London-listed company aims to decrease its reliance on
coal and steel and attract a broader base of investors by adding
more battery metals, including lithium, manganese and copper, to
its streaming and royalty portfolio, Treger said.
A form of mining financing, royalties are payments that give
the owner the right to receive a percentage of production from a
mining operation, or retain a stake in it, in exchange for
upfront payments to the producer.
Anglo Pacific has recently bought a share of cobalt
production from Vale's Voisey's Bay mine in Canada
for $205 million, marking the start of the transition to cleaner
Cobalt, whose price has quadrupled in two years, is also one
of the metals used to make batteries for electric vehicles.
With this acquisition, Anglo's exposure to coal and steel
has gone down to around 20%, from 50% previously, but the
company aims to take that "well below 20% by the end of the year
via further acquisitions," Treger said.
The company is working on a base metals transaction that
will require an upfront payment of $50 million, it previously
Its main thermal coal asset, Narrabri in Australia,
contributed less than 10% to the company's 2020 revenue.
(Reporting by Clara Denina. Editing by Mark Potter)