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UPDATE 1-Drummond hires Goldman to float possible Colombia sale to investors-sources

Published 08/03/2018, 07:10 am
Updated 08/03/2018, 07:20 am
UPDATE 1-Drummond hires Goldman to float possible Colombia sale to investors-sources
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(New throughout, adds second source, Drummond declines tocomment)

BOGOTA, March 7 (Reuters) - Alabama-based coal minerDrummond DRMND.UL has hired Goldman Sachs (NYSE:GS) GS.N to exploreinvestor interest in the possible sale of at least a portion ofits operations in Colombia, Drummond sources said on Wednesday.

Colombia, the world's fifth-largest exporter of coal,produced 89.4 million tonnes of the fuel last year. Drummond wasthe country's largest thermal coal producer and exporter in2017, with output of 32.4 million tonnes and exports of 32.3million tonnes.

The sources, who were not authorized to speak publicly onthe matter, did not confirm how much of its stake in Colombiathe company may want to sell.

"They are exploring the interest of investors to see ifthere is interest in the company's coal assets in Colombia," onesource said.

Drummond would not officially comment on the matter, theother source told Reuters. Goldman Sachs said it would respondshortly to a request for comment.

Drummond sold 20 percent of its stake in the Andean countryfor $1.5 billion in 2011 to Japan's Itochu 8001.T . The companysaid at the time it had looked into selling outright.

Asia is a major market for Colombian coal.

Besides Drummond, the biggest players in Colombia's coalindustry are Glencore Plc GLEN.L , Murray Energy Corp's MUYEY.UL Colombia Natural Resources, and Cerrejon, which isjointly owned by BHP Billiton BLT.L , Anglo American PLC AAL.L and Glencore.

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