According to The Australian Financial Review, Anglo American has reiterated its faith in Australian coking coal with a commitment to spend $US226 million ($324 million) reviving a Queensland mine that was a victim of the global financial crisis.
More than 10 years after it was suspended because of concerns about the health of the global economy, Anglo's Aquila hard coking coal mine is finally set to return with a different mining method.
The project is expected to have a total capital cost of about $400 million, with Japanese giant Mitsui set to fund 30 per cent of the project that Anglo is not funding, in line with its minority ownership stake.
The decision highlights the strength of coking coal prices, with hard coking coal from Queensland fetching an average of $US205 per tonne in the first six months of 2019.
Macquarie expects the steelmaking ingredient to fetch higher than $US150 per tonne until 2024 at the earliest.
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